How To Communicate Rent Revision To Tenant?

November 3, 2022

Annual rent revision is a common practice in the rental business. Although the rate for rent revision & the time period is mentioned in the lease agreement, it is still customary to inform the tenant before applying the revised rent rate.


A property owner may decide to increase the rent for reasons such as:


  • Change in base rental rate in the market
  • Increase in property taxes, insurance, utility prices, etc.


Though the property owner can notify the tenant about the rent increase before the lease agreement ends, the rental increase is applicable only at the time of lease renewal unless the lease agreement provides for increase during the lease period. It is important to check the legal time frame for sending the notice of rent increase


What is the best way to communicate a rent increase?


Written communication is the best way to inform a tenant about rent increase. Apart from being a legal requirement, a rent increase letter also serves the purpose of an official document that proves that tenants were informed of the change in advance. This can be used to handle disputes in future, if any.


Important things to know before drafting a rent increase letter


While planning for the increase in the rent, it is important for the property owner to be empathetic & understand that increase in rent may have a financial impact on the tenant.


Property owners should keep the following points in mind before finalizing the new rent:


  • Increase in the rent should be in accordance with prevailing market trends.
  • Understand the local rent increase laws to ensure compliance.
  • The increase in rent should be reasonable.
  • Consult a professional property manager before setting the new rent rate.


Rent Increase letter wording and delivery?


The following few tips can help property owners write an effective rent increase letter:


  • To begin with, it is imperative that the tone of the rent increase letter should be professional and polite. The letter should be crisp and convey the message clearly.
  • The letter should include important details such as the name of the tenant, property’s address, date of letter, date when new rent will be effective, new rent amount, due date of first payment after rent increase, and expiry date of the current agreement.
  • Also mention the date before which the tenant should respond to the letter for lease renewal (if applicable).
  • Proofread the letter to ensure that the details and language is correct.
  • Add a clause to allow the tenants to accept the rent increase or choose to vacate the premises at a certain date in accordance with the lease agreement.
  • The rent increase letter can be sent via certified mail to ensure receipt.


Contacting a professional property management company can make the rent increase process smooth. Hunter Rentals & Sales is a premier property management company that offers comprehensive management of single-family homes, duplexes, fourplexes and townhomes in the Fort Hood area (Killeen, Harker Heights, Copperas Cove and Belton).


To know more about the rent increase procedure and for residential property management services, visit Hunter Rentals & Sales at 1503 W Stan Schlueter Loop, Killeen, TX - 76549 or call (254) 634-3311

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