Increasing Rent the Professional Way
So you’ve decided it may be time to up the rent and how you wish to go about it. One of the obvious factors as to whether your existing tenants will stick around for another year is what you decide the new rent should be. On that same note, a rent increase will affect the odds of moving in new tenants. Now comes the time to put together the letter informing of the rent increase. Every state has its laws on how landlords can legally go about increasing the rent. You may wish to look into what the existing rules are for rent-controlled housing, how often the can be increased, the number of days that must be provided in advance, as well as whether the lease permits rent increase during the lease term. Depending on where the property is located, there may not even be limits on how much the rent can be increased but going too high will alienate renters. Communication is essential — a notification on rent increases simultaneously informs and officially reports the rent increase to the occupant. You want to ensure professionalism and stick to the point when writing the letter, but make sure it's respectful and courteous too. Note that money is a sensitive subject, however, and so engaging with compassion and empathy helps remind your tenants that you respect them as individuals. While keeping the letter brief is preferred, consider offering a concise statement as to why the rent is being increased. It may be due to the increasing cost of conveniences enjoyed by tenants, new city fees that you don't have power over, upgrades, or something else. Adding this openness degree reveals where you come from, which will make the resident understand.