Rent increase notice and signing new lease

[Linda Thomas]

Hello!

Looking for advice on sending rent increase notice and signing new lease. 

Lease expires 1/31/23 and i am sending a notice to increase rent this weekend (60 day notice) i would also like them to sign a new lease as they have been with me for 12 yrs and my lease has changed drastically (higher late fees, increase yearly etc) since then as they have never signed a renewal. 

Should i send the new lease along with the rent increase for them to review or wait till mid Jan if they do decide to stay. If i send it with the renewal would i jus have them get it back to me by 1/31 and date 2/1??

Thks

[Richard F.]

Aloha,

You should certainly send them a copy of the new agreement with ample time to review, sign, and return. You might consider including a "plain English" summary of the changes also. I would give them a deadline of 1/15 (or earlier) to return it to you, so you are fully aware of their intentions.

[James Mc Ree]

I send a simple letter with 3 paragraphs:

1. Thank you for being my tenant. You have been my tenant for N years which I very much appreciate.

2. The rent is going up to X effective Jan 1. I explain X is a great rent compared to the comps which I include as a range effectively inviting the tenant to shop.

3. Let me know if anything needs maintenance.

I add a paragraph if there are terms and conditions being added or changed. You might be able to do that instead of asking them to sign a new lease if what you really want is only a handful of changes. Signing a new lease feels like a big deal. It might not be, but you can tell them these changes go into effect Jan 1 if you stay and they don't need to sign anything. Staying is acceptance.

#3 Can help the tenant accept the change if something gets fixed or improved, within reason. I also include reminders for winter weather: clear snow, turn off outside hose bibs, guard against mice - helpful guidance and reminders to soften the blow.

[Bill B.]

What James said:

Thanks for being great tenants for so long. I’m afraid that the rising costs of everything ar causing me to have to raise your rent as well. 

If you wish to continue renting after the expiration of your current lease I need this form signed and returned to me before Dec 15th.

Effective January first the lease for the property at address x between landlord x and tenant x is changed in the following ways…

The new rent is blank

The fee for x is now x

The tenant is now responsible for x maintenance/utilites

And the new expiration date is x/x/xx

signed________. X/x/xx tenant. 
    

 Then provide them a copy you signed after they return it. Don’t sign first. 

[Eliott Elias]

Send them a text outlining the important points, give them a timeline to agree or start looking for a new place. 

[Nathan Gesner]

Quote from @Linda Thomas:

Tenants generally don't stay that long unless the rent is cheap. You would probably be better off terminating their lease, renovating, and renting for market rate.

If you choose to keep these renters, and they can afford it, I recommend increasing rent so they are at no more than 10% below market. I hope you've been doing inspections.

Like the others said, I would give them the new lease with a very short, professional cover letter that explains the main changes. Give them a specific deadline to respond with the signed lease or with a specific date they intend to move out.