Rent increase letter: template and how to send it

A rent increase letter tells your tenant how much the rent will be, from which date, and why the change is allowed. When it's clear and on time, the tenant can plan around it. When it's vague, late or sent as a quick text, it can start an argument, a refused payment or an early move-out you didn't want.

This guide is for owners who raise the rent themselves. It covers what to check before you write, how to settle on the new amount, what the letter should say, a template you can adapt, and how to deliver it and keep a record.

Why the rent increase letter matters

The letter is often the only document that shows the tenant was told about the new rent, when and how. If a payment comes in at the old amount, or the tenant says they never got notice, that letter and the proof that you delivered it are what you'll point to.

It also sets the tone for the rest of the tenancy. A good tenant who gets a fair, well-explained increase with time to plan is more likely to stay. Replacing a tenant can mean lost rent while the home sits empty, plus cleaning, repairs and showings, which can cost more than the increase brings in.

Why raising the rent is harder than it looks

You need facts from several places. The increase clause sits somewhere in a lease you signed a year ago. The notice period depends on where the property is, and sometimes on how large the increase is. Your notes on the tenant's payments and repair requests are in a bank app, a spreadsheet and three chat threads.

Then there's the conversation itself. Many owners put it off because it feels awkward, and the notice deadline passes. The increase then waits months, or goes out in a rushed message that leaves out the date or the amount.

Before you write: check the lease and the local rules

Start with these questions. The answers tell you whether you can raise the rent now, by how much and how you must tell the tenant.

• What kind of lease is it? During a fixed term, many leases only allow an increase if a clause says so. Month-to-month tenancies usually allow increases with written notice. Read your rent clause and any renewal clause.
• Does the lease set the increase? Some leases name a date and a method, such as a fixed amount, a percentage or an inflation index. In Brazil, for example, residential leases usually set a yearly adjustment by an index such as IGP-M or IPCA. If yours does, the letter applies that clause instead of choosing a new number.
• Is there a cap? Some places limit how much rent can go up, or how often. A few US states and cities have rent stabilization rules, and Mexico City ties increases to the previous year's inflation. Many other places set no cap at all.
• How much notice is required? Notice periods differ by state, province and country, and can be longer for larger increases. Count back from the date the new rent starts, and add time for delivery.
• How must notice be delivered? The lease or local rules may require a letter, a specific form, delivery in person or by certified mail. A text message may not count.

Rules change, and the summary above is general. Check the rules where the property is with your local housing agency, a landlord association or a lawyer before you send the letter.

How to decide the new rent

Pick a number you can explain to the tenant in one or two sentences. Look at:

• Current rents for similar homes nearby. Compare listings with the same size, area and condition, not just the highest ones you can find.
• Your costs. Property tax, insurance, building fees and maintenance may have gone up since the lease started. Your income and expense records show by how much.
• The tenancy. A tenant who pays on time and looks after the home is worth keeping. Some owners raise less, or not at all, to avoid a vacancy.
• Open repairs. If something the tenant reported is still waiting, fix it or schedule it before the letter goes out. An increase on top of an open leak is hard to accept. In many places it's also illegal to raise the rent to punish a tenant for asking for repairs, and fixing the problem afterwards may not change that. If the tenant just reported a problem, check the local rules first.

Apply the same approach to every tenant and write down how you reached each number. Fair housing and anti-discrimination rules apply to rent increases too.

What to include in a rent increase letter

A complete letter answers every question the tenant would otherwise have to ask:

• the date of the letter;
• your name and the tenant's names, as they appear on the lease;
• the property address and unit;
• the current rent and the new rent, in exact amounts;
• the date the new rent takes effect;
• what stays the same (due date, payment method, the rest of the lease);
• the reason for the increase or the lease clause it follows, briefly;
• how to reach you with questions, and by when to reply if you're also offering a renewal;
• your signature.

If you're raising the rent as part of a renewal, our lease renewal checklist covers the rest of the offer: the new term, other changes and signing the addendum.

Rent increase letter template

Adapt this to your lease and local rules. The names, address, amounts and dates are examples.

Notice of rent increase

Date: Dec 15, 2026

To: Jordan Lee, Apt 4B, 120 Maple Street

Dear Jordan,

This letter is to let you know that the monthly rent for Apt 4B, 120 Maple Street, will change from $1,450 to $1,510, starting with the payment due on Mar 1, 2027.

The increase follows section 5 of your lease and reflects higher property tax and insurance costs for the building. Your due date, the way you pay and every other term of your lease stay the same.

If you have questions, you can reach me at (555) 014-2290 or by email. I appreciate you taking care of the apartment, and I hope you'll stay.

Sincerely, Maria Gómez, owner

Keep the tone neutral. You don't need to apologize for the increase or push for a quick answer. If you plan to talk with the tenant first, do it a few days before the letter arrives, so the letter confirms what you discussed. If the increase is part of a renewal offer, add the new term and a reply date.

How to deliver it and keep proof

Send the letter the way your lease and local rules require. Where they allow a choice, use a method that leaves a record: certified mail, a delivery in person with a signed receipt, or email if the lease accepts it.

Then keep:

• a copy of the signed letter;
• the proof of delivery, with its date;
• your notes on any conversation about the increase.

Store them with the lease, not in your email. Put the new rent and its start date in your rent records the same day, and add the next date to review the rent to your calendar. Our guide to organizing rental property documents shows a simple way to keep lease dates and notices together.

After you send it

Give the tenant time to read the letter and reply. Our guide for tenants on what to check when the landlord raises the rent shows the questions a tenant is likely to ask. Common responses:

• They ask questions. Answer in writing, even if you also talk by phone, so both of you have the same facts.
• They ask for a smaller increase or a later date. Decide whether keeping the tenant is worth it. If you agree on something different, confirm it in writing and send a corrected notice if the rules require one.
• They decide to leave. Confirm the move-out date in writing and plan the move-out inspection.

On the date the new rent starts, check the first payment. If it arrives at the old amount, write to the tenant calmly with the difference and the date of your letter before taking any other step.

How RentalThread will make it easier

With RentalThread, each lease will sit with the rest of the property's records. AI will read your leases and pull out the dates that matter, such as the end date, the notice period and the rent clause, and you'll check what it found before it's saved. Lease renewal and rent increase reminders will tell you when to start, before the notice deadline passes.

Rent and expenses per property will be in the same place, so you can see how your costs changed before you choose a number. See what's planned for owners.