No landlord enjoys writing rent increase letters, as you don’t want to risk isolating loyal tenants or risk offending anyone who receives a letter. However, increasing your rent to better align with market rates and cover your costs is important to ensure that you make income from your investments. How can you master writing rent increase letters?
5 Tips for Writing Rent Increase Letters
- Know the Law: First, you need to make sure that you understand any rules or regulations for increasing rent that your property might be subject to. Know that you should plan on providing each tenant with 30 days or more of notice, you cannot increase the rental rate for accrued rent and you should only increase the rent once a year.
- Educate Your Tenants: Rent increase letters can be a sensitive subject for tenants, but it’s important to educate them on the costs that you might be facing. Did you repaint the building this year? Do you need to replace the roof? Have you upgraded appliances? Showing them where the increased rental rate is going is a great way to help them understand the need for it.
- Personalize It: Try to avoid having rent increase letters be generic or starting with phrases like “dear tenant.” Instead, take time to personalize them to the tenants receiving them and encouraging them to reach out to discuss any concerns that they might have.
- Make It Clear: You should always ensure that your rent increase letters are crystal clear. Instead of saying something like “rent will increase 5%,” put the current rent and new rent with an exact dollar amount. This way, you can avoid any misunderstandings over what the tenant will be responsible for moving forward.
- Make It Easier: A property management company like All County Denver South Property Management can handle writing and delivering rent increase letters on your behalf. Thanks to our years of experience, we know how to get it right.
All County Denver South Property Management Can Manage Your Properties
All County Denver South Property Management is here to help property owners get the best return on their investment through knowledgeable and trustworthy property management services. From managing tenant relationships to lease enforcement, we look forward to working with you to see how your rental property investment can be a long-term, stress-free asset. We work with landlords throughout Lakewood, Englewood, South Denver, Greenwood Village, Highlands Ranch, Ken Caryl and Aurora. For a complimentary quote, call us today at (720) 664-4550.