Rent Increase, new contract?

Question

Do you recreate your contract with your tenant after you increase the rent or just create an increase addendum of the current lease?

Nathan Gesner · Answer

Most states will allow pen-and-ink changes to an existing contract as long as all parties agree and sign. You could simply write a note on the back that says, "Rent increased to $1,150.00 per month on February 1, 2020" and then have everyone sign it.

If you want to be more professional, type up a one-page letter that adds the changes. Be sure to reference the original contract and contract date so you can tie them together in court, if needed.

Damian Bialonczyk · Answer

@Crislie P.

I typically recreate the contract whenever one of my tenant's lease is due for renewal, but I think it's just a personal preference of mine. If for nothing else it serves as an opportunity for the tenant to refresh themselves on the terms of the lease.

Kyle J. · Answer

@Crislie P. After the initial one year lease term, I let my leases go month-to-month. I do this intentionally because I feel there are more benefits to me this way (mainly so I can change the terms or increase the rent whenever I want).

For this reason, when I want to raise the rent, I don’t have the tenants sign a whole new contract. In fact, I don’t have them sign anything. I simply mail them a letter advising them of the rent increase, which includes the date the increase will take effect, and an advisement that all other terms/conditions of the original rental agreement will remain in effect. (Note: Nothing more is required in my state. Make sure to follow whatever legal notice is required for your state for rent increases.)

Joe Splitrock · Answer

I have done it three different ways:

1. New lease - usually I do this if there is other changes in the lease.

2. Signed addendum - this is easier and faster for an extension. I just have them sign and return.

3. Just send notice of rent increase - I do this for people who are turning month to month and I am increasing rent without offering renewal.

For me it is a balance between having legal bases covered and time spent. My full lease is over ten pages long.

Michael Noto · Answer

Just create a new lease with the new dates and rental amount. Easiest way to do it.

Stephen J Davis · Answer

I always sign a new lease when I raise the rent on single-family (1-4 units) and at my apartments. Don't be lazy. Get it done.

Rent Increase, new contract?

Most Popular Reply