Sample Rent Increase Letter for Monthly Tenants

Image shows two people with their cat and dog looking concerned after receiving a rent increase notice. Text reads: "How tenants are protected during a rent increase: rent increases are not allowed during the lease term; landlord must send the tenant a written notice before increase; landlord must provide adequate written notice; rent increase must be considered reasonable (as determined by the local rent market); tenant can fight illegal rent increase in court; tenant does not have to agree to the rent increase"
Photo:

Image by Ellen Lindner © The Balance 2020

Landlords must often follow specific legal procedures when increasing a tenant’s rent. The two major requirements landlords must follow are, providing the tenant with written notice of the increase and giving this notice a certain number of days before the tenant’s lease is set to expire. 

Below you will also find a sample letter of how to inform a monthly tenant that you are going to raise their rent. 

Does a Rent Increase Affect the Security Deposit?

It can. Many states set a maximum amount a landlord can charge as a security deposit based on the monthly rent. For example, the security deposit could be two times the monthly rent. Therefore, if the monthly rent goes up, the landlord could require the tenant to put additional money toward their security deposit. This additional amount would usually be due at the same time the rent increase takes effect or when the tenant signs a new lease. Sometimes, the landlord will not ask for additional security deposit money even if the rent is increased.

6 Ways Tenants Are Protected During a Rent Increase

A landlord cannot increase a tenant’s rent whenever he or she feels like it. There are certain steps landlords must follow to raise the rent. This process is meant to help protect the tenant from ridiculous and unfair increases.

1. A rent increase cannot occur during the lease term. Unless the lease agreement specifically says otherwise, rent increases are not allowed during the lease term. The tenant signed an agreement to rent the property at a certain price, and this price will remain valid until the lease expires. A landlord can propose a rent increase when a new lease agreement is due to be signed or after the original lease has ended and the tenant agrees to an extension under new terms.

2. Landlords must provide written notice before the increase. If a landlord wants to increase a tenant’s rent, the landlord must send the tenant a written notice. This notice can be hand delivered or mailed to the tenant. It is always a good idea to send this notice via certified mail so there is a record that the tenant received it. Notifying a tenant orally of a rent increase will not hold up in court.

3. Even for monthly tenants, landlords must still provide adequate written notice. For month-to-month tenants, it is common for a state’s law to require the landlord to provide notice either 30 or 60 days before the rent increase is set to take place. The amount of notice needed will often depend on the percentage that the rent is being increased. In California, for example, if the rent will be raised by 10% or more, 60 days’ notice is required.

4. The amount of the rental increase is also subject to rules. A rent increase must usually be considered reasonable, as determined by the local rental market. A landlord often doesn't want to lose a tenant and increases the rent to have a bit more money to cover expenses. Increases may be used to cover growing real estate tax bills and insurance premiums. If a property is rent-controlled, there are specific rules as to how much a rent increase can be and how often the landlord can increase the rent.

5. Tenants can fight illegal rent increases in court. If a tenant feels the landlord is increasing their rent as an act of retaliation or discrimination, he or she can take the landlord to court. An example of a retaliatory rent increase would be a landlord increasing a tenant’s rent because the tenant complained about a potential health violation at the property.

6. Tenants have the right to reject rent increases. A tenant does not have to agree to the rent increase. However, if he or she does not agree to pay the higher rent, and it is a reasonable increase, the tenant must move out of the rental unit. If the tenant stays in the rental unit once their old lease expires, they will be responsible for paying the new rent or else be subject to eviction and legal action.

Sample Rent Increase Letter

Notice of Rent Increase for Month-to-Month Tenants

Name of Tenant
Address of Tenant
Unit Number

This Notice is to inform you that beginning on, Insert Date of Rent Increase, the monthly rent for the unit you currently occupy, Unit Insert Unit Number, which is located at, Insert Property Address, will be increased to Insert New Monthly Rent per month. This rental payment is due on or before the 5th day of each month.

If you wish to continue your tenancy, the new monthly rental payment of Insert New Monthly Rent is required. Please be advised that all other terms of your original rental agreement remain in effect.

Please sign the Notice below, indicating your agreement and continued tenancy or indicating your disagreement and subsequent termination of tenancy.

Thank you. We appreciate your continued tenancy.

Sincerely,

 

Landlord’s Signature:_________________________ Date:______________________________________

 

_ _ _

 

___I agree to the new monthly rent amount of Insert New Monthly Rent beginning on Insert Date of Rent Increase and will continue my month-to-month tenancy as per our original rental agreement.

 

Tenant Signature:__________________________ Date:___________________________________

 

___I do not agree to the new monthly rent of Insert New Monthly Rent. I will not continue my month-to-month tenancy and will vacate the premises by Insert Move-Out Date according to the terms of our original rental agreement. (See Also: Sample Move-Out Checklist)

 

Tenant Signature:________________________________ Date:_________________________________________

Key Takeaways

  1. Landlords must give written notice before raising rent, ensuring tenants have time to prepare for the increase.
  2. Rent increases generally can't happen during a lease term; they must typically go into effect upon the lease's renewal or extension.
  3. Security deposits can increase with rent hikes, potentially requiring tenants to add more money to their deposits to comply with state regulations.
  4. Tenants have rights: For example, they can contest unjust rent hikes, but refusal to pay may lead to eviction.
Was this page helpful?
Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Judicial Council of California. "Security Deposits."

  2. State of Delaware. "§ 5514 Security Deposit."

  3. Commonwealth of Massachusetts, Office of Consumer Affairs and Business Regulation. "Types of Tenancies."

  4. Maryland Attorney General. "Leases."

  5. City of Oakland. "Allowable Rent Increases."

  6. State of California, Department of Consumer Affairs. "Rent Increases: Basic Information for Tenants," Page 1.

  7. Judicial Council of California. "Eviction."

Related Articles