As a landlord, you cannot increase the rent of your property whenever you want. There are laws governing when and how much rent you can increase. Usually, the initial rent agreement holds information of yearly rental increases so the tenant is aware that an increase in rent is impending. However, it is important to provide notice to the tenant in advance so that he is aware of this increase at any given point in time, and is prepared to either end the contract or pay the increased amount.
A notice letter to a tenant will consist of the following:
• Reason why the letter is being written
• Reference to the law or document pertaining to which the increase in rent is being observed
• Mention of how much increase is to be made, preferably in percentage
Once you have put this information in your notice letter, you can give the tenant two options – contract renewal or termination. If you feel that the tenant will be willing to renew the contract, you can enclose an addendum or a new lease agreement with your letter.
The notice letter should provide specific and clear details of the rent increase. You can use the following sample to write one in such a situation. Have a look!
Sample Notice Letter to Tenant for Rent Increase
Julian Mathews
478 Evergreen Street
East Orange, NJ 22733
(000) 987-6767
Julian @ email . com
June 28, 2015
Brian Macey
2390 Ogden Street
East Orange, NJ 28302
Re: Notice of Increase in Rent
Dear Mr. Macey:
As you are aware, the rent agreement drawn between us is expiring on June 30, 2015. As per the terms laid out in the original agreement (copy enclosed), the rent of the property (2390 Ogden Street, East Orange) on which you are currently residing is subject to an increase on yearly basis. Please refer to the enclosed copy of original rental agreement which states that the rent increase of the said property will float between 10% and 20% annually.
Please refer to the details below:
Current monthly rental amount: $800
Increase in rent @ 12%
Monthly rent as of July 1, 2015: $992
If you agree to this increase in rent from next month, please contact me at (222) 222-2222 so that we can arrange for a mutually convenient time for a meeting to draw up the new agreement. However, if this agreement is not suitable for you, please let me know immediately and I will make arrangements for terminating the existing agreement.
If you have any questions regarding this notice, please feel free to contact me.
Sincere regards,
(Sign Here)
Julian Mathews
478 Evergreen Street
East Orange, NJ 22733
(000) 987-6767
Julian @ email . com