How to Word a Rental Increase in Your Lease
Laws protect renters from experiencing a rent increase during a current lease term. A landlord must wait until the current lease expires to enact a rent increase. In addition, to legally increase the rent, a landlord must give written notice to the renter before the expiration of the current lease term that notes the approaching expiration date of the lease and gives the renter the option of renewing the lease at a higher rental rate.
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Instructions
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State, in writing, to the renter the date her lease will be ending: "Your current lease, that you entered on January 4, 2010, will end on January 4, 2011."
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Inform the renter that if he chooses to stay, the rent will increase: "Your current monthly rental rate is $585.00. At the end of your current lease, if you wish to stay in the unit, you will need to sign a new rental agreement at a higher monthly rate of $615.00."
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State the date that the new rental rate will be effective: "The new rental rate of $615.00 will take effect on January 5, 2011." This new rate will be the rate for the duration of the signed lease.
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To avoid confusion, give the renter a deadline to sign the new lease, such as "by 5 p.m. on January 3, 2011."
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Tips & Warnings
The minimum amount of notice that must be given to the renter regarding a rent increase will vary depending on the laws in your jurisdiction.
You must word the rental increase notice in such a way that you clearly state the ending date of the old lease and the option to sign a new lease at a higher rate, or the notice will not be considered legally binding.
