Rent increase lease addendums

[Wesley W.]

Hello all,

They say the definition of insanity is expecting different results by doing the same thing.  I am not happy with the results I am getting from my current method, so I'm looking for some ideas.  

Here's my current process for giving rent increases to my tenants, all of whom are in "C" properties on month-to-month leases:  I send written notification via First class mail *and* by Certified mail (which tenants never sign for and are always returned to me).  Within the envelope is a letter explaining the rent increase as well as a lease addendum for them to sign and return with the SASE contained therein.

My timeline is as follows (dates used for clarity of example):

Written rent increase notification dated and mailed to tenant on March 30.

Signed lease addendum due back to me no later than April 30.

Rent increase as described in the addendum is effective June 1.

The problem I am having is what to do with the notifications that don't come back.  I'm trying to make it as easy as possible for the tenant and systematizing the process for myself in the meantime.

If they don't respond, now I have to chase them for the addendum during the month preceding the increase.  I've considered the option of including a Notice of Termination in with the rent increase letter and addendum, but that puts an even more of a negative connotation on the increase - and then I would have to have them re-sign an entirely new lease.  They say you get more flies with honey than with vinegar, so I haven't actually done that yet, and I'm not sure it would make it any better (and quite possibly worse).

I know some of you use the "carrot on a stick" method by offering some upgrade or service with the rent increase as a way to increase tenant buy-in and compliance.  This won't work with my business model.  For one, the increases are extremely modest ($10-$25) and would most likely be completely spent on any such perk; I'm merely trying to keep my return consistent as costs rise.  Also, the ephemeral nature of the MTM lease doesn't lend itself to a win/win with an update.

So, how do most of you handle the rent increase process?  Any suggestions would be greatly appreciated.

Thanks in advance!

[Thomas S.]

My tenants all know there will be a annual rent increase. I never molly coddle my tenants and I do not give perks to smooth over rent increases. Tenants need to learn that rent increases will apply anually. I send out the notice per landlord tenant codes and the increase becomes effective on the date specified in the notice regardless of whether they respond or not. I never chase tenants.

When the rent is due if a tenant does not pay the new rate they should receive a notice of reminder and be instructed that if the new rate is not received within 24 hrs they will be receiving a non renew notice of their lease. I never tolerate tenants playing games.