How to Notify a Tenant in Writing of an Increase

Steps

1. Jot down a few notes about why you are increasing rates and by how much. Keep it simple. If the increased cost of building materials is making it more difficult to afford to maintain the property, say so.
2. Determine whether to hand-write or type the letter, then gather the supplies and information necessary to complete the letter.
3. Greet the tenant by name, but not too familiarly. "Dear Ms. Smith," not "Dear Connie." Be direct and honest. Use your listing of reasons to explain yourself. Also, be sure to specify when the increase begins and to give the tenant time to adjust their budget or make new living arrangements.
4. Close the letter with an offer to further discuss the matter in person or on the telephone if the tenant has questions.
5. Provide your contact information and name to the tenant.
6. Address and send the letter.

Tips

• Be prepared to have to answer questions. You may even have to let the tenant vent their frustration at the increase. Try not to let this bother you, unless the tenant becomes threatening and hostile. Keep your temper in check and try to be as understanding as you can.
• Give tenants at least a thirty day window before the rates increase. This gives them time to determine how to afford the increase or whether to seek new living arrangements. (You may be required by law to provide more time. Ensure that you are raising your rates legally.)
• Consider raising the rates in increments, rather than all at once.
• Check with your attorney with regard to the local laws about rent/rate increases. You may be legally bound to give the tenant a certain grace period or you may be limited in how much of an increase you can make at one time.

Warnings

• If a tenant threatens to harm you or the property, notify the authorities. It is better to notify them and have it be an empty threat than to have an irate tenant show up on your doorstep with a gun.
• Ensure that your rate increase is legal. If you attempt to raise your rates in conflict with State or local law, your tenant may be able to sue you. If you are not sure on the legality of the issue, contact a lawyer.

Sources and Citations

• http://www.findlaw.com

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