Rent Increase Notice
Leasing your property is a complex issue, especially if we talk about the long-term tenancy. It is absolutely essential to discuss all the matters at the moment of signing the lease contract, and there is no doubt the most important one is the price. Normally, if you have agreed upon some payment amount, it will not change within quite a long time — the premises are not getting newer, and the tenants that occupy your place are getting more trusted.
Nevertheless, various factors may force you to raise the rental payment amount. In this article, we will learn more about when it happens and how to build up an official notice for your tenants.
What is a Rent Increase Notice?
A Rent Increase Notice is an official notification you want to create when there occurs a necessity to make your rental price higher than before. According to the laws, this might be done only when you deal with a monthly lease agreement — the concept of raising the price for your weekly lease apparently seems quite odd. There are no pricing limitations — you are allowed to make the price as high as you need.
When to Use a Rent Increase Notice?
Creating this form is a respectful way to reorganize your legal relationship with the tenant in case you have to make the rental price higher. If you have been leasing your property to the same tenant for quite a long time and they have appeared to be careful about the condition of your premises and providing monetary funds on time, simply telling the occupant they will need to pay more in the foreseeable future can lead to the contract termination.
There are several reasons why you may need to raise the price, including:
Rising service and utility fees;
Keeping up with the market;
What Should be Included in a Rent Increase Notice?
A standard Rent Increase Notice has a relatively simple structure and consists of two pages.
The first page will contain the following:
Number of days your tenant has to respond;
The date of rent increase;
New rental payment amount;
The second page is a certificate of service. Here is information about the date when the notice was received and the means of delivery.
How a Rent Increase Notice Works
This document will be considered effective if it is in writing. In some states of the US, you should make sure to deliver the form by certified mail. Also, the notice has to be completed and sent not later than 30 days prior to changing the price.