As a landlord or property manager, you may increase rents on rental properties periodically. A Rent Increase Notice can be used as a written notification to your tenants. It can include details such as the rate of increase and when the increase takes effect.

How much can a landlord raise the rent?

Local and state laws may regulate how much you can increase the rent and how many days of notice you are required to give. You are also most often restricted from raising rent while a current lease agreement is still active, unless it specifies in the lease that a rent increase may occur.

Can a landlord increase the rent without providing notice?

In most areas, property management companies cannot raise the rent without providing notice. How far in advance notice needs to be given varies by local landlord-tenant laws. Some areas also have different notice requirements depending on how much the rent is raised. If the lease agreement is still active, you may choose to send a letter out 60 days in advance to remind your tenant that their lease is soon to end, the rent rate will be increased, and that a new lease will need to be signed to continue.

Can a landlord also increase the security deposit?

Local laws vary, but in most cases security deposits cannot be raised unless it is included in the active lease agreement. If a rental agreement doesn't exist or the terms have expired, property managers can raise the security deposit with due notice. However, the definition of what “due notice” is varies depending on local ordinances. Most often it is 30 to 60 days. Some areas also have restrictions on how much the landlord is allowed to raise the deposit.

What is the best way to send the notice?

You'll want to send it in a way that ensures that the tenant actually receives the notice. You can arrange to deliver the letter in person, which also gives you the opportunity to explain the rent increase terms. Other options include using a courier service, registered mail or certified mail. If you actively communicate with your tenant by email, you can send the notice by email, but it is best practice to also send a printed copy, as well.

Are there restrictions on raising rents?

Limitations vary by local laws, but in most cases you'll want to be careful about any action that could be construed as discrimination or retaliation. For example, if your tenant has complained about possible code violations and is requesting repairs, it may be considered an act of retaliation if you increase the rent. Some areas also have rent control ordinances, which may limit how much and how often you can raise rents.

Our Rent Increase Letter template makes it simple for you to make customized notification documents. It also allows you the opportunity to communicate other types of updated rent information such as changes in payment options or late-fee schedules.

If you have questions about rent increases, ask a lawyer. If you need additional rental forms, check out our landlord center.