If you own or manage rental property and you need or wish to raise your tenant's rent, make sure you follow proper procedures.
1. Be aware that you usually cannot increase the rent of a tenant during the duration of a long-term lease.
2. Determine the amount of rent increase by surveying rents of similar rental properties in your market area. Consult a real estate agency.
3. Review the terms of your tenant's lease or rental agreement for clauses that determine the procedure for notifying the tenant about rent increases. (Advance notice of 30 days is usually required.)
4. Inform your tenant in writing of the amount and effective date of a rent increase, giving proper advance notice according to the terms of any lease or rental agreement.
5. Be prepared to negotiate on the amount of the rent increase if you want to retain good tenants in your rental property.
• Steep rent increases may scare off existing tenants. Be aware that the costs of replacing good tenants may outweigh the benefits of raising their rents.