Dear

First I want to thank you for being good tenants and always paying your rent on time. Effective with the rent payment of 6-1-XX I need to increase your rent to $2,600.00 per month.

This covers my increases in your gardening service, insurances, (earthquake and home owners), and property taxes. This still keeps your rent below current market rent for a 3-bedroom home.

Yours truly,

To Tenants of residence number______.

Due to increased costs of water, trash, electric, taxes and repairs, I am increasing your monthly rental amount from $_____to $_____effective on January 1, 2021.

I usually give the notice on October 31st, giving 2 months notice so they can decide to stay or leave or just get used to the idea.

We appreciate you making your home with us and we do not make the decision to raise rents lightly. The main reason for rent increases are higher property tax and insurance costs. We are giving you 60 days’ notice so that you have time to find another home if you disagree with the rent increase.

This notice is to inform you that beginning on March 1st, the monthly rent for home you currently occupy will be increased to $1000.00 per month. This rental payment is due on or before the 1st day of each month.

If you wish to continue your tenancy, the new monthly rental payment 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.

Sincerely

Property Manager

~~~~~~~ Fill out and return this part to the address above ~~~~~~~~~~~~~~~~~~

___I agree to the new monthly rent amount of $1000.00 beginning on March 1st 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 and I will not continue my tenancy. I will vacate the premises by ______________, giving 30 days’ notice, according to the terms of our original rental agreement. I understand that all standard move-out procedures apply. Please send me the move out instructions and procedures.

Tenant Signature: __________________________Date:__________

Some good example above, but I make it even easier: there is an annual rent increase built into my lease. Automatic 2.9% bump over the rate currently in effect. If I want more, then I send a letter. Otherwise, we go with the auto increase which the tenants have already agreed to in writing instead of me mailing a letter and then pestering them when they don't return it, or them balking saying I should lower their rent due to (insert reason, like Covid-19).

Find out what your market is like and consider implementing an automatic 2.5% to 5% annual increase in your lease. That should cover MOST markets unless you're in a hot, hot, hot market. If that's the case, go 10-15%, and you can always reduce it for less and be a hero to your tenants.

R L,

I use Jeffrey's approach combined with an automatic renewal and 2.9% increase built in to the lease. We autodraft their rent. We mail a letter so there are no surprises.

Dear (their real name)

Thank you for being a 3 Star Resident!

As you know prices are going up all around us, including the unseen expenses on your home which we cover such as property insurance, property taxes, utilities, fees, and most recently the new School Referendum tax approved by voters in May - averaging $9 per month for every home.

Attached is a copy of your lease page showing the agreed automatic increase.

Jan 2020 $800 + 2.9% = $823.20 starting Jan 1, 2021.

This is a great time to consider our convenient PayDayPlan

Weekly $215.80 or Bi-weekly 431.60

If you would like to change payment plans just text Kris with your choice at 999-999-9999

(Highlighted in yellow)

If you feel you cannot afford this increase please text your suggested rate to Kris for review by the office.

(Recently we received only 2 discount requests out of 62 increase letters mailed. We knocked off $5-10 and everyone was happy.)

R L,

PS - Don't be shy. YOUR costs have been creeping up and you must cover the increases.

Take a moment to study yoru numbers - compare yoru expenses over the last few years, esp 2020's hit.

Like my letter states the school tax jumped up $9 per month

Lumber for repairs is way up. Treated is sky high!

Little parts and pieces like toilet repair parts are up

I have to pay almost double to get ANY workers

My water/sewer util co is raising prices 45%

They now charge $20 to open the meter pit so we can see if water is flowing. Then they charge another $20 to come back and close it.

City council added a LL registration fee

I typically include a rentometer report and ask them to reach out to me to discus.

I need about 1 to 2% rate increase because of inflation - but I am in a market that is focused on cash flow and not much appreciation.