Increasing rent...

[Christine Mwai]

Hi all,

Please give me any on all thoughts on the best way to approach or inform tenants about a rent increase. The house is currently rented under market.......I did increase rent with the last lease...by 6 percent.They are great tenants.... my question is the best way to  approach this... thanks.

[Christopher Lombardi]

@Christine Mwai, keep it simple.  We use a letter that gets sent out a few months before the termination date.  It looks something like this...

Dear Mr. X and Mrs X

Our records indicate that your Lease at the above referenced property, dated September 17, 2014, expires on September 30, 2015. We value you as a tenant and hope that you continue your residency with us in the future. We would like to renew your lease agreement for an additional one year at an increased rental rate. If you agree to renew for one year, your new Lease End Date will be September 30, 2016.

Please indicate your intentions by initialing next to the appropriate decision, signing below and returning to us no later than May, 15 2015.

______ I wish to renew my Lease for an additional one-year term. I understand and agree to pay the rental rate of $1,570 per month for the renewal term.

______ I wish to renew my Lease for an additional two-year term. I understand and agree to pay the rental rate of $1,580 per month for the renewal term.

______ I do not wish to renew my lease and I will be vacating at the time of the lease termination. This may be considered my 30-day written notice. The reason I am not renewing my lease is: ___________________________________________________________________ ______________________________________________________________________________

__________________________ _____________________________ ___________

Tenant’s Name Tenant’s Signature Date

__________________________ _____________________________ ___________

Tenant’s Name Tenant’s Signature Date

This renewal shall become an addendum to the original lease, and the terms and conditions of the original lease shall remain in full force and effect.

Sincerely,

Management