If you are a landlord, then there are several reasons for which you are required to raise rent of your rental property. Well, it is worth mentioning that Rent Increase Letter plays an important role in this context. It can be used as a written notification to the tenants. Also, it is used to notify the residents that you are about to increase rent of your property.
Rent Increase Letter is also of great importance because it makes sure that all the relevant and crucial information are in writing, and there will be no confusion or dilemma over the rent increase. It is also true that though rent Increase letters is infrequent in nature, so it requires expertise in order to frame them. So, users can take help from the professional websites in order to download Rent Increase Letter Sample and Rent Increase Letter Template.
Even though a tenant is living in rental property of landlord’s and the person is also paying the rent to landlord, but if a landlord want they he can hike rent of the tenant. But it is not like that the landlord can do it anytime; there are certain things which have to be fulfilled in order to increase rent of tenants.
So, once the landlord is convinced to increase rent of tenants, then he/she issues a letter to the tenant in order to notify him about increase in hike. This letter is known as Rent Increase Letter.
Users can download Rent Increase Letter Template from different websites in order to serve their purpose. It is also recommended that one should use professional templates and refer to Rent Increase Letter Example offered by them as they include each and every point which are necessary for the formation of the Rent Increase Letter.
Well, this is the most important question frequently asked by landlords because composing Rent Increase Letter is one of the most dreaded things. It is evident that the relationship between a tenant and landlords is very delicate, and when it is about sending correspondence of this type, it is imperative to make sure that the things are done in proper way.
Rent Increase letter should be worded carefully in order to ensure smooth transition because for some it is like keeping up with market value and for some, it is like to offer the price of costly repairs.
Landlords should keep in mind that on the other end the reader is a hard working person. Any further increase in his expenditure can frustrate him like anything because he is already loaded with some other stress like bills, expenses, etc. A letter written incorrectly can lead to vacancy loss to landlord, so it is imperative to keep few things in mind and learn properly that How to write Rent Increase Letter?
It is crucial that rent should be increased at the end of the lease period, and it should be explicitly mentioned in the lease agreements documents. It is also crucial to explain reason behind increasing rent. Then landlord is required to remind the tenant of the assessment period that they are within this stretch. The landlords should be honest to tenant regarding whether it is inflated repairs, property tax increase or inflation.
Landlords have to be specific regarding the amount to be increased and should also notify the date of its establishment. It is important that not to be ambiguous when it is about Rent Increase Letter. As per the rule, landlords should offer the letter to tenants a month before so that the person get some time to adapt with the increased rent or find some other place to reside.
Suppose you have a tenant, and he is like a model one, make sure that you give him compliments regularly. It is evident that people who take care of the properties are very hard to come by, so make them feel important and also let them know the way they have been appreciated. Someone has said it truly that it is difficult for anyone to be mad when they are being flattered.
Notice of Rent Increase Letter is actually a notice in written from landlord to tenant and it officially converses that there will be a hike in the amount of money taken as rent. A landlord is allowed to increase rent of tenants when Rental Agreement or Original lease allows the landlord to do so. In case, lease agreement has already expired, or there is no lease agreement then both the landlord and tenant has to sign a new agreement following the available state and local laws.
Note: If you reside in a metro city then don’t forget to check city laws as your municipality might have rent stabilization or rent control laws. The laws state that how much and when the landlords can increase rent.
Notice Rent Increase Letter contains some elements, and they are discussed below. But before that, it is important to mention that if you find yourself in a position of landlord then don’t waste your precious time in writing Rent increase letter. Just download Rent Increase Letter Sample and Rent Increase Letter Template to solve your purpose. Remember that the templates are absolutely free of cost, and they can also be edited as per your requirements. So, what are you waiting for? Rush!
Current Rent: It is the sum total of money which currently tenant is paying to the landlord.
Premises: It depicts the address and location property given on rent.
Effective date: It suggests the date from when the tenant will start paying the new rent.
New Rent: It is the amount of money which is hiked by the landlord for the rent of the property.
Landlord: In this column, name of the owner of the property will be there.
Tenant: It fills the name of the person who currently possesses the property.
Well, Rent Increase Letter is needed when landlords feel that there is a need to increase rent of the property. The owner uses this type of letters to document the need to collect more rent. These types of letters are very helpful in case of any conflict between the landlord and tenant, and it can be used as stronger evidence compared to a verbal agreement.
It is already mentioned that writing Rent Increase Letter is one of the tricky things, so one should not try designing the format of these letters on their own as they are already designed by professionals. All you have to do is to download professional Rent Increase Letter Template and use them as they can be edited easily. Landlords have to follow certain things before writing Rent Increase Letter, and they are discussed below step by step.
First, prepare mindset to write Rent Increase Letter
- Get acquainted with laws of the region where you are residing
- It is better to evaluate your responsibilities and rights as a landlord
- You should always try to practice good or decent rent increase practice
- You approach should be to write a Friendly Rent Increase Letter as it will help to maintain a cordial relation with your tenant
Then start writing the letter
- Always start with the details of tenant like name, address, contacts, etc.
- Place a proper subject
- Specify the proper reason behind why you are increasing the rent of the property. (better if it is in opening paragraph)
- Suggest the new rent as per the valuation of the property
- Then finally conclude the letter and post it to the tenant
Note: If you are sending the Rent Increase Letter through mail then it considered much better than text or any other means of communication.
Users can get Rent Increase Letter Sample from different websites. They can also get Rent Increase Sample and templates through copying the templates and then convert it into word processing program. The best thing about the professional templates is that they are structured properly, and they can be customized to be edited.
So, you just have to download the Rent Increase Letter Example available over internet and edit them as per the requirement and then send it to concerned person.
It is crucial to have a regulatory body in every field as it regulates the proceedings of the organization. So, in order to assist the landlords and tenants both, LTB (Landlord and Tenant Board) Rent Increase was established on January 31, 2007. It was created by the Residential Tenancies Act (RTA).
RTA offers residential landlords and tenants with some right and duties and it also sets out a process to enforce them properly. LTB (Landlord and Tenant Board) Rent Increase does not offer information about the rights and responsibilities of non-profit housing associations and their associates.
As per the latest regulations, property owners can hike rent by every 12 months, and they also have to offer 90 days written notice to the leaseholders before they implement the increase.
The rent for the property mainly based on the current market price. Along with that the valuation of the property also plays a vital role in this context. According to new regulation, the property owners can increase 2.0% rent in this year (2016) and for 2017 it will be 1.5%.
So, if you think that you are in need of Rent Increase Letter Template then you must get to the professional websites as you will be getting templates in abundant over there and the will make your job easier. Another important tip for Rent Increase Letter is that landlord or property owner should not use any casual or informal tone in the letter, otherwise regulatory authorities can take action property owner.
Get your professional templates now!