Rent Increase Notice

Most rent disputes between reasonable people are about how the increase was communicated rather than the increase itself. A tenant told in a phone call, then sent a higher figure on a payment reminder, reacts badly to a revision they might otherwise have accepted. One written notice, served in good time, removes almost all of that.

What notice you must give, and whether the increase is restricted at all, depends on the rent agreement and on the rent legislation applying where the property is. Read the escalation clause in your own agreement and check the local position before serving anything — this letter assumes an increase you are already entitled to make.

Check the agreement before the letter

Find the escalation clause and quote it. If the agreement provides for a revision on renewal only, an increase mid-term is a request rather than a notice, and sending it as a notice starts the conversation badly. If there is no clause at all, say that openly and explain what you are proposing instead.

Give more notice than you have to

A tenant given a month to absorb an increase and rearrange a standing instruction usually accepts it. The same tenant told a week before the due date often does not, and the disagreement is rarely about the amount. Where the tenancy is one you want to keep, the extra fortnight costs nothing.

Serve it so you can prove it

Hand it over and take an acknowledgement on your copy, or send it by a method that produces a record, and follow up by email or message so there is a timestamp. Keep the copy with the agreement. A revision nobody can prove was communicated is a revision that gets argued about at the end of the tenancy.

Common questions

How much notice must I give before increasing rent?

It depends on the agreement and on the rent legislation that applies where the property is, both of which vary across states. Read your escalation clause first, then check the local position. Where neither settles it clearly, giving a full rental period of notice in writing is the cautious course.

Can I increase the security deposit at the same time?

Only if the agreement allows it, and even where it does it is worth asking whether you want to. A deposit increase asks the tenant for a lump sum at the same moment as a higher monthly outgoing, and it turns a routine revision into a negotiation. Several states also regulate the maximum deposit, so check before proposing one.

The tenant refuses the increase. What now?

Establish first whether the increase is one the agreement entitles you to make, because that determines whether this is a renegotiation or a breach. Keep it in writing from that point on, and take advice before treating the tenancy as ended — the procedure and protections differ substantially between states.