Rent Increase Form

15 Replies

Hi Everyone,

I think it's about time I increase rent on my tenants, haven't done it forever. I'd like to leverage a standard rent increase form, if there is such a standard form out there. Where is the best place to get one? (yes google comes up with a ton, but is there one in particular that you like to use?) Thank you!

I just created one myself simply saying the rent will increase to xxx starting on xxx. You can keep it simple or you can try to throw in a little explanation of why the rents are increasing.

I guess I don't need to over think it. Thanks!

There is another thread on this but here is something I just wrote up and modified as I know the tenant will be leaving so I added a check box so I get written notice.

Thank you for being a tenant here at x. Our goal is always to provide a nice place to live, at a fair price. Whenever the prospect of raising rent comes up at any property, we take a good hard look at it, to make sure it’s necessary. In that light, we have decided it is necessary to raise the rent on your unit, effective Apr 1, 2014 to $900.00 from $850.00 This is to partly to offset the increasing cost of property taxes, insurance, high heating oil, maintenance costs and upgrades since our purchase of the building in x.

Even after this increase, we believe we are still at or below the average market rent for a unit of this type. Rather then pay an increase you may choose other housing. Should you intend to vacate at the termination of your lease, the original lease agreement states that you have to provide 30 days written notice of your intent to move. If you choose, signing this form checking off that you will not renew and returning the form to us 30 days in advance of your expected renewal will be considered your written notice.

@Colleen F. , that's exactly what I was looking for! And yes even increasing rent I know we're way below market value for what we're renting out. I know folks say keep emotions out of it but we love our tenants, they keep the house cleaner and decorated so much nicer than we ever did when we lived in it. We're only looking to increase rent 3.5% but I know we could easily raise it 8% and be inline with what other are charging in our area. Thanks!

I couldn't find the other thread but some people went so far as to mention the market value of comparable rentals in their area in the letter. For me it isn't relevant as I know she is not renewing.

As far as finding 'market value', is this done through Zillow, Craigslist, or is there somewhere I can find rental rate data that's been collated by city, etc? Thanks! :)

there is rentometer.com (not accurate in our area). I think the reference I saw was similar properties are renting for x - y range on craigslist or maybe Zillow.

thanks, yah that is not accurate for my area for sure. If I charged what that rentometer suggested, I would have a line of applicants around the block I think. Thanks! :)

Not expert advice! In Mass. I am rather sure we have to provide a "30 Day Notice to Quite With Offer to Establish a New Tenancy"

Sounds ominous doesn't it? I handed my tenant this letter and she looks at me and says; "Are you kicking me out"..... I explained; as the letter does I am raising the rent, and I also have in there some information about taxes, insurance etc.... (most of the info I cut out from below example)

This is basically what the form looks likes, provided as a reference only... I would check with your state laws as to the proper method.

30 DAY NOTICE TO QUIT WITH OFFER TO ESTABLISH A NEW TENANCY
(TENANT AT WILL)

Date: XX/X/2013

To: XXXXXXXXXXXXXXXXXXXXXXXXXXXX Lowell Ma XXXX

Please be advised that I am terminating your tenancy. You are notified to quit and deliver the premises you now hold as my tenant on or before _01/03/2014. If you fail to leave by that date, I will go to court and seek permission to evict you from the premises. This is not a judicial document.

Unless you accept the offer of a new tenancy as stated below, any payments that you make after you receive this notice will be accepted for use and occupancy only and acceptance of any payments will not create a new tenancy with you.

I offer you a new tenancy with the following terms and conditions to be effective 01/03/ 2014 ;

[x ] The Rent will be $ __925.00_______ per ___Month , and an increase of the Security Deposit of $ __Zero Dollars.

XXXXX, due to the rising cost of insurance and taxes I am raising rent.

IThe average market value for an unit similar to 139 Andrews St. Is 1000 – 1100$ a month. I am sorry for the increase but it is necessary.

I will also be returning your Security Deposit as a show of good faith, I know you take great care of the place and will take responsibility for any damage as outlined in the TAW and additional paperwork. If you accept the new terms I will be providing you a new paperwork including a TAW agreement.

Please indicate your intentions by signing a copy of this notice and returning it by 12/15/2013 .

Landlord: XXXXXXXXXX

[ ] I will be moving, and will be out by _____/_____/_____ .

[ ] I accept the offer of a new tenancy as stated above.

Tenant: __________________________________________________ Date: ___________________

Tenant: __________________________________________________ Date: ___________________

Tenant: __________________________________________________ Date: ___________________

Thanks @Frank F. . My tenants were on a year lease which was up last august 2013. They're on month to month and the original 1 year lease stipulated the month to month conditions, X days notice before vacating, etc so I don't know if I need to reiterate that with the rent increase.

I did want to give them an option of A. renew lease and monthly will only increase 3.5%. Option B. stay month to month but rent will go to 5% above option A.

Not sure if that's Kosher but seems fair to me :)

As far as average market value, really I went through zillow and craigslist to see what other 3/2 houses in my area (ones that are fairly turn key as that is the scenario with mine, granite counters, stainless steel appliances, landscaped yard, etc) go for and they all go for way over what I'm charging now; but that was me eye balling it. I didn't go off any official statical average on some website.

I love my tenants, I don't think they'll move out, but if they did, I'm not too worried about being able to find new tenants, so I guess we'll see what happens!

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@Esther Thomas you won't find any "official statistical average", it comes down to actively researching your local market and what others are charging.

Craigslist can be a great start, but you have to put some work in on the back end. Watch how long it's been listed or does it disappear quickly. Disappearing quick gives you an idea that it was listed at a good price, lots of relisting or a long list time indicates it's over priced. Look at the pictures so you can be sure it's comparable to your rental.

Same thing goes for driving around and calling for rent signs to see what is being charged in your specific area.

Finally here comes the art piece, what specifically do you price at? If you take that range you've determined and price on the upper end, you'll probably get bad tenants that no one else wants to rent to because they're willing to pay extra just to get a place and you'll end up with higher turnover because there's no incentive to not move when their lease is up. Too low and you miss out on cashflow.

I like to go just below the median, so if your range is $1100-$1250, with the majority being at $1200, I'd shoot for $1175. It's just enough below the majority of other places to get you noticed and rented quick but not so far below that you're losing money every month.

Originally posted by @Frank F.:
Not expert advice! In Mass. I am rather sure we have to provide a "30 Day Notice to Quite With Offer to Establish a New Tenancy"

Sounds ominous doesn't it? I handed my tenant this letter and she looks at me and says; "Are you kicking me out"..... I explained; as the letter does I am raising the rent, and I also have in there some information about taxes, insurance etc.... (most of the info I cut out from below example)

This is basically what the form looks likes, provided as a reference only... I would check with your state laws as to the proper method.

30 DAY NOTICE TO QUIT WITH OFFER TO ESTABLISH A NEW TENANCY
(TENANT AT WILL)

Date: XX/X/2013

To: XXXXXXXXXXXXXXXXXXXXXXXXXXXX Lowell Ma XXXX

Please be advised that I am terminating your tenancy. You are notified to quit and deliver the premises you now hold as my tenant on or before _01/03/2014. If you fail to leave by that date, I will go to court and seek permission to evict you from the premises. This is not a judicial document.

Unless you accept the offer of a new tenancy as stated below, any payments that you make after you receive this notice will be accepted for use and occupancy only and acceptance of any payments will not create a new tenancy with you.

I offer you a new tenancy with the following terms and conditions to be effective 01/03/ 2014 ;

[x ] The Rent will be $ __925.00_______ per ___Month , and an increase of the Security Deposit of $ __Zero Dollars.

XXXXX, due to the rising cost of insurance and taxes I am raising rent.

IThe average market value for an unit similar to 139 Andrews St. Is 1000 – 1100$ a month. I am sorry for the increase but it is necessary.

I will also be returning your Security Deposit as a show of good faith, I know you take great care of the place and will take responsibility for any damage as outlined in the TAW and additional paperwork. If you accept the new terms I will be providing you a new paperwork including a TAW agreement.

Please indicate your intentions by signing a copy of this notice and returning it by 12/15/2013 .

Landlord: XXXXXXXXXX

[ ] I will be moving, and will be out by _____/_____/_____ .

[ ] I accept the offer of a new tenancy as stated above.

Tenant: __________________________________________________ Date: ___________________

Tenant: __________________________________________________ Date: ___________________

Tenant: __________________________________________________ Date: ___________________

This is confusing. It sounds like you want the tenant to move. And why would you promise to return their security deposit??

Its a termination of the existing agreement with an new offer. It is my understanding this is the "proper" method of increasing rent for a TAW or month to month tenant in Mass.

After a not so good experience I am trying to do everything "by the book".

The security deposit refund was a way of easing the blow of increasing the rent. They have been very good tenants for 4 years; I have never raised the rent; and they take great care of the place, Between you and me, I was not keeping the security deposit properly (as outlined by Mass state law) and I did not want that to come back and bite me later.

If they contest the handling of the SD they can win 3 times the amount from the court.

In short it was a gesture of good will, and a way to get out of a potential problem. They are legally responsible for any damage as outlined in the TAW agreement, security deposit or not.

I know this may already be too late for you but I would suggest small yearly increases going forward instead of waiting 2-3yrs, even if its $25 a year vs $100 in year 3 or 4.

Here is what I use:

LEASE RENEWAL OPTION

Tenant Name
Address

Please be advised that the lease on your home is due to expire on September 1, 2013.

Because of your excellent record as a tenant with us, you will be granted the option to renew your lease for an additional one year period. Due to increasing taxes and other carrying charges, we must advise you of a $25 annual rent increase. Accordingly, please be advised that your new rent amount as of September 1, 2013 will be $__825__ per month.

Please check off one of the following options and sign below.

[ ] Yes, I/We want to exercise our option to renew our lease for an additional year.

[ ] I/We wish to vacate the premises before September 1, 2013. I/We agree to follow the terms in our lease concerning vacating and re-rental

Tenant: ___________________________

Date: ___________________________

Please return this letter with August’s rental payment so that we may process your request.

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