It is almost inevitable that landlords will need to increase tenants' rent in order to keep in line with market prices. Often, landlords increase rent between rental contracts. If you increase rent during a contract, you must conform to your area's laws and regulations regarding tenant rights and should consider the possibility of vacancy.
Ensure that there is a provision for rent increases in the tenant's lease agreement. If you are increasing the rent in between lease contracts, you may be faced with a legal challenge from the tenant.
Review state law to ensure the amount you're raising rent does not violate legislation meant to prevent rent prices from rising too rapidly. You should also ensure that the new rental rate is equivalent to similar properties in the area to prevent your tenant terminating your contract and vacating the property.
Give the tenant a letter of notice that explains the rent increase. This gives the tenant adequate time to prepare and to make the necessary provisions in his or her budget. Many states require minimum amount of time you must given tenants notice for rent increases. In California, for example, you must give at least 30 days notice if the rent increase is 10 percent or less, and at least 60 days notice if the rent increase is more than 10 percent.