With inflation and the cost of living on the rise, rent increases eventually become a necessity for your business. No one likes to receive a notice of a rental increase. However, if you deliver the news correctly, you will not have to worry about losing occupancies. Here is how to write a rental increase letter that correctly notifies your renters of the cost increase while supporting retention.

Follow All State Regulations For Rent Increases

Before increasing your rental prices, you need to first review tall legal requirements with your local housing authority. Many states, counties, and cities have protections like rent control, rent stabilization, and renter protection ordinances. These regulations cap the amount you can raise rent. Other regulations like notice periods and justifiable cause rules regulate how to raise rent and notify your occupants. Make sure to follow all local laws regarding rental increases; otherwise, you may face penalties like lawsuits and civil fines.

What To Include In Your Rent Increase Notice

Every state is different and has different requirements for your notice. However, certain things should be in every rental notice, including: 

— Occupant's full name and address

— The rental management company's name and address

— The rental's name and address

— Date of the notice

— A clear statement of the rental increase

— The effective date of the rent increase 

— New rent amount 

— Reason for the rental increase

— Reference to the relevant clause in the lease agreement 

— Instructions on how to respond to the notice

— How long the occupant has to accept or deny lease renewal

— A line for the occupant to provide their signature

— A reminder of occupant rights and where to find more information 

When you compose the rental increase letter, make sure to use straightforward and plain language to reduce any potential confusion.

Six Tips To Support Occupant Retention With Your Rental Increase Letter

Delivering the news of a rental increase is not easy because of the risk of losing renters. However, with the proper communication, you can reduce the possibility of occupancy loss. Here's some tips: 

1. Notify renters well in advance to allow time for adjustment or discussion.

2. Clearly explain reasons for the rent increase, such as rising tax costs, facility improvements, or market changes.

3. Consider offering incentives for lease renewal, like a locked-in rate or premises upgrades.

4. Invite renters to discuss any concerns about the rent increase to show you value their input.

5. Express appreciation for their tenancy and timely payments to foster goodwill.

6. Highlight the benefits of the rental, like its location, amenities, or services.

Send the rent increase letter by certified mail and email to guarantee recipients receive it as soon as possible. 

Anytime you increase the rent, there is a risk of occupancy loss. However, with the right communication strategy, you can deliver the news of rental increases while protecting your renewal rate and resident satisfaction. For more strategies for rental pricing and rental management, contact Occupancy Solutionsns.com. Since 1986, we've been helping rental managers increase their income and occupancy rates.