Introduction letter and Increase in rent

Member since 2022 · 4 posts · 4 votes

Hello! We just closed on our first 4plex. We would like to write an introduction letter. We also need to give notice of increased rent. Can you share your ideas or steps?

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Bjorn AhlbladPro Member

Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes

@Jodi Baron welcome to BP! In the intro letter tell them who you are and how to pay rent. In order to raise the rent you need to see where the tenant is in their lease term and you need to provide notice as required by local laws and within limits if they exist. I don't know where you are located but research that and how it may or may not apply.

All the best!

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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
4y
@Jodi Baron welcome to BP! In the intro letter tell them who you are and how to pay rent. In order to raise the rent you need to see where the tenant is in their lease term and you need to provide notice as required by local laws and within limits if they exist. I don't know where you are located but research that and how it may or may not apply.
All the best!
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
I agree with Bjorn. Keep it short and sweet. Tell them who you are, how they can contact you, how/when to pay rent, and schedule an inspection within the next 7 - 10 days so you have a foundational understanding of what you own and are managing.

If your increase is 10% of less, then I would give notice in the letter. If your increase is larger than that, then I would seriously consider terminating with these tenants and starting fresh with new renters at market rates.
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Jodi Baron
OP
Member since 2022 · 4 posts · 4 votes
4y
Thank you! I am in Grays Harbor area of Washington state.
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Michael Temple
Rental Property Investor · Toledo, OH · Member since 2017 · 262 posts · 215 votes
4y
I agree with others, you need to understand the present lease tenants are under unless they have expired and you are on a month-to-month lease. Plus, state laws may come into play that you need to know. Some states/cities have weird rules that require certain notifications before taking action, i.e. terminating a month-to-month lease or possibly raising rents.
However, assuming there are no issues with existing leases or laws that would prevent you from raising rents you might want to do a little research before diving into this. Where are your rents compared to similar properties? How many similar rentals are available in the area? How does the condition of your property stack up against similar properties, if yours are run down compared to others you might want to do some upgrading before just raising them.
For now, I would just start with a basic introduction letter and don't mention rent increases. Then do all the research and make a decision after that.
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Logan Aldinger
New to Real Estate · IA · Member since 2021 · 6 posts · 4 votes
4y
Following this. Jodi, this is a great question that I would love to hear about. I reached out to an off market property owner of a 4 plex and he reached back out to me. He is willing to sell at a certain price. The only problem I am seeing is that I am unable to do a low down payment with my income not being able to support the price. I have about $20,000 to put down but have to figure out how to come up with the other $40,000 - $45,000. If I find a way, I will be looking to send an intro letter and raise rents as well to the market level!
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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
4y
Originally posted by @Jodi Baron:
Thank you! I am in Grays Harbor area of Washington state.

One of the best places to be a LL!
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Brian Hughes
Seattle, WA · Member since 2017 · 275 posts · 223 votes
4y
welcome and congratulations.
Based on your question this sounds like you are a first time landlord. If this is so, first of all you need to familiarize yourself with WA landlord tenant law. There have been many changes - favoring tenants - in the last several years, including changes that render a couple of the other suggestions in this thread illegal in WA state. There are specific rules on when you can end tenancy (just cause) statewide, and statewide rules on giving notices for increases. There is also a bill in the legislature this term which if passes will require 180 days notice for any rent increase over 3% as well as triggering punitive terms to the landlord (effectively rent control lite).
Many local jurisdictions (Seattle, tacoma, bellingham, king county, etc) also have local landlord/tenant rules. I doubt if grays harbor does, but you need to look into it.
You should also consider joining one of the landlord industry associations active in WA state. For you, WLA (washington landlord association) is probably most appropriate. There is also RHA but they are more focused on the Seattle-Tacoma-Everett urban zone. Either org is extremely helpful though, and is your voice in Olympia.

PM me if you would like me to share the intro letter I used last summer with purchase of my latest investment (a 7 unit in Everett, WA)
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R.J. Lange
Kennewick, WA · Member since 2021 · 30 posts · 34 votes
4y
Yes. Deliver by door knock service, or post and mail if they are not home a letter notifying them of a change in Ownership/management that includes something simple and professional like the following-
'The Property at ______ is under new ownership/management with _____________. We have received some information about your tenancy and a copy of your lease, but will need you to contact us with the following:
- Name & birthdate of every occupant (adult & child)
- Phone number & Email for every adult on the lease
- All vehicles (make, model, year & color)
- Any animals: Name, Breed, Age, Weight (this is not an authorization to get an animal, but an inquiry)
Please contact _______ by email: _____________ or phone: _________ with this information.

Rent must be received by by the 1st of each month, beginning 02/01/2022, with late fees assessed based on your current lease agreement. We can receive rent in the following ways:
- Check, money order or cashier's check mailed to our office
- Check, money order or cashier's check dropped off at our office or in the drop box to the right of our door
- Online using eCheck from your bank account (no fee service) through your new Tenant Portal
A Tenant Portal Activation Link will be emailed shortly after you provide an email address to _______.
Please review the included letter about your tenancy with _______________.
In addition, we will be doing an inspection of the property in the next few weeks. You'll receive advance notice of date once it's determined.'
Also include your notice of rental increase either on the same notice or separate.
You will also want to set the expectation for tenants to communicate work orders and preferred method.
Or hire a professional property management company and they will take these steps and more.
Hope this helps!
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R.J. Lange
Kennewick, WA · Member since 2021 · 30 posts · 34 votes
4y
For Washington, if on a month to month agreement, also note if on a month to month the landlord may not terminate a tenancy without 'just cause'- I can send you more info on this if you are unfamiliar. A rent increase notice would look similar to-
60-Day Notice of Rent Increase

Please review the information below with details of the future rent increase.
Rent Auto Payments:
- If you are on auto-payment through your portal and selected the "pay balance in full" option, your payment will automatically adjust to this increase on the effective date.
- If you setup your auto-payment to be a specific & set amount, you will have to manually adjust the amount to match the new rent charge on the effective date.
Please let us know if you have any questions.
Thank you,

_____________________

Rent Increase Details:
Effective

your monthly rent, which is currently $

and payable on or before the first (1st) day of each month, will be increased to $

Unless otherwise noted on this notice, all other terms of your tenancy and lease shall remain in full force and effect.
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Jodi Baron
OP
Member since 2022 · 4 posts · 4 votes
4y
Thank you all, you have given me a lot to think about. So far, we have delivered an introduction letter just letting them know who we are, where to pay rent and how to get ahold of us for questions or repairs We have scheduled a walk through inspection for this weekend. Right now, every tenant is month to month as their leases have expired. Also, rent is well below our market averages. The place definitely needs work but we knew that going in. We are planning on doing repairs to the place right away.
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Sherief Elbassuoni
Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
4y
@Jodi Baron, on top of what is mentioned above, I will recommend you to visit the RHAWA website, then go to the "Covid" tab. You will know what you can and can't do from there
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