Rent Increase Notice & Letter Template for Landlords
Need to raise the rent? Get a free rent increase notice template plus notice periods, rent control rules, and common mistakes to avoid.
Quick Answer
A rent increase notice is a written letter telling a tenant their rent is going up, and how much notice you owe them depends on your state and lease type, typically 30 to 60 days for month-to-month tenants. Most states don’t cap how much you can raise rent, but a handful, including California and Oregon, set a statewide percentage limit. Whatever your state allows, put the increase in writing, give proper notice, and avoid raising rent as retaliation or discrimination. Use the template below to write yours.
Let’s face it, most tenants never want to see a rent increase notice. However, sometimes it becomes necessary to raise the rent. Typically, this is done to keep up with mortgage payments and cost of living in the area.
So, when it comes to writing a rent increase letter, make sure you’re in compliance with any landlord-tenant laws. Especially as it concerns raising the rent.
You’ll also want to ensure you’re giving the tenant sufficient notice of the rent increase. This gives them time to decide whether to renew their lease or move out. The notice you need to give your tenant will vary from state to state. Generally, you need to let the tenant know of a rent increase 30-60 days in advance of their lease ending.
Why do landlords raise the rent?
While the exact reasons vary from landlord to landlord, there are a few main reasons that landlords need to raise the rent:
Increase in property taxes
High mortgage rates
Increased cost of living
Rent increase is built into lease
To ensure they can cover the cost of property maintenance
Is there a limit to how much a landlord can increase rent?
Unless the property is rent-controlled, there is no limit to how much a landlord can increase the rent. However, legally, there are rules that govern how and when landlords can raise the rent. They must provide proper advance notice, and they cannot raise the rent as retaliation against a tenant.
Typically, rent increases are 1-3% year-over-year to keep up with the market. Upping the rent by a low percentage helps to not drastically raise the rent and scare off tenants.
State Rent Control Basics
Most states don’t cap how much you can raise rent at all, and many of those states go further and prohibit cities and counties from passing their own rent control ordinances. Where a cap does exist, it’s usually tied to the Consumer Price Index (CPI) rather than a flat number.
California’s statewide law caps most covered rent increases at 5% plus the local CPI, up to a maximum of 10% in any 12-month period. Oregon’s statewide cap works similarly, 7% plus CPI, also capped at 10%. Both states carry their own notice-period rules on top of the percentage cap, and exemptions exist for newer construction and certain property types, so the cap doesn’t automatically apply to every unit.
Landlord-tenant law also varies on the basics, like how much notice you owe a tenant and whether a rent increase can happen mid-lease. RentRedi’s own state guides, like the ones for Illinois and Pennsylvania, walk through what applies where you operate. If you own in multiple states, check each one separately rather than assuming one state’s rules carry over.
How to write a rent increase letter?
When it comes to writing a rent increase letter, you want to ensure that you include the following important information:
Date of the notice
Tenant name(s)
Tenant address
Old rent amount
New rent amount
Date rent increase will start
Required notice
Your name & contact information
Write a Rent Increase Notice | PRINTABLE
You can download our example of how to write a rent increase notice here.
If you’d rather copy and customize a version directly, here’s the same template inline:
[Date]
[Tenant Name]
[Property Address]
Dear [Tenant Name],
This letter is to notify you of an upcoming rent increase for [property address]. Effective [effective date], your monthly rent will increase from [current rent amount] to [new rent amount].
This notice is being provided in accordance with your lease agreement and [state] law, which requires at least [number] days’ notice for a rent increase of this size.
If you have any questions or would like to discuss this change, please contact me at [phone number] or [email address].
Thank you for being a valued tenant.
Sincerely,
[Landlord/Property Manager Name]
[Contact Information]
Common Mistakes to Avoid When Raising Rent
Sending less notice than your state requires
Notice periods aren’t universal, some states require 30 days, others 60 or 90 depending on the size of the increase. Sending the wrong notice period can make the increase unenforceable until you resend it correctly, which delays when you can start collecting the new amount.
Ignoring a state or local rent control cap
If your property falls under a rent control or rent stabilization ordinance, exceeding the cap opens you up to a tenant complaint or a legal challenge, even if the increase seemed reasonable. Confirm coverage and the current cap before finalizing a number, not after you’ve already sent the notice.
Raising rent as retaliation
Increasing rent shortly after a tenant files a complaint, requests a repair, or exercises a legal right can be treated as retaliatory, which is illegal in most states regardless of whether the increase itself would otherwise be allowed. Keep your timing and documentation clean if an increase happens to follow a tenant complaint for unrelated reasons.
Not putting the increase in writing
A verbal heads-up about a rent increase isn’t enforceable and leaves you with no proof of when or how the tenant was notified. Always send a written notice, keep a dated copy, and use a delivery method you can confirm, like certified mail or a signed acknowledgment.
Signing a New Lease After a Rent Increase Notice to Tenants
When it comes to writing a rent increase notice, the more time in advance you let the tenants know, the easier the process will be on you and them. If they choose to not renew their lease, they have plenty of time to give you notice. Then, you can begin the search for your new renters!
However, if the tenant chooses to accept the rent increase & renew their lease, you can get to work on putting the new lease together. If you’re a RentRedi landlord, you can even upload the lease and send to your tenant for e-signature so you can get their new lease signed ASAP!
Before You Send the Notice
Getting a rent increase right comes down to three things: give the notice period your state and lease require, stay inside any rent control cap that applies, and put it in writing. The template above covers the letter itself, and the questions below cover the situations that come up most often once you’re ready to send it.
FAQ
How much notice do I need to give for a rent increase?
Most states require at least 30 days’ notice for month-to-month tenants, though some require 60 or 90 days depending on the size of the increase or local law. Fixed-term leases generally can’t have a rent increase take effect until the lease renews, unless the lease itself allows a mid-term change. Always confirm your specific state and lease terms before sending notice.
Is there a limit to how much I can raise the rent?
In most states, no, there’s no percentage cap as long as you follow notice requirements and don’t raise rent for a discriminatory or retaliatory reason. A small number of states, including California and Oregon, cap covered increases at a percentage tied to CPI. Check whether your property is covered before assuming either way.
Can I raise the rent in the middle of a lease?
Generally, no, a fixed-term lease locks in the rent amount until the lease ends or renews, unless the lease itself includes a clause allowing a mid-term increase. Month-to-month tenancies are different since either party can adjust terms with proper notice. Review your specific lease language before attempting a mid-term change.
What counts as a retaliatory rent increase?
A rent increase that follows shortly after a tenant complains about a habitability issue, requests a repair, joins a tenants’ organization, or exercises another legal right can be considered retaliatory, and most states prohibit it regardless of whether the increase amount would otherwise be legal. Timing matters here, so document your actual reason for the increase.
Do I need to give a reason for the rent increase?
In most states, no, you’re not legally required to state a reason as long as the increase isn’t discriminatory or retaliatory and proper notice is given. Some landlords choose to explain the reason anyway, rising costs or market rates, since it tends to land better with tenants and reduce pushback.
How much should I raise the rent by?
There’s no single right number. Many landlords aim for roughly 1-3% year-over-year to track market and cost increases without pricing out good tenants, though local market conditions and, where applicable, rent control caps ultimately set the real ceiling. Check comparable rents in your area before deciding.
Conclusion
A rent increase notice protects you and keeps the process compliant, provided you give proper notice, stay within any cap that applies, and put it in writing.
Next steps:
Confirm your state and local notice period and rent control rules before choosing a number.
Fill out the template above, send it the way your lease and state require, and keep a dated copy.
If your tenant renews, get the new lease signed and start tracking the updated rent on day one.
RentRedi’s built-in e-signature and rent collection tools make it easier to update a lease and start collecting the new amount without missing a payment cycle. See pricing to find the right plan for your portfolio.
