He can. Many states set a maximum amount that a landlord can charge as a surety based on monthly rent. For example, the deposit could be twice the monthly rent. Therefore, if the monthly rent increases, the landlord may require the tenant to put additional money into their deposit. This additional amount would normally be due at the same time when the rent increase takes effect. Sometimes the landlord will not ask for the extra deposit money, even if the rent is increased. Awareness of rental market trends and fluctuations ensures that the increase keeps your property competitive. You can even share this information with your client to justify the increase. Have you included a clause in the tenancy agreement that imposes incremental increases as something that tenants can expect? If so, ensure that local laws that believe such a clause is illegal do not violate this clause. Landlords often have to follow certain legal procedures when increasing rent.
The two main requirements that landlords must fulfill are to notify the tenant in writing of the increase and to give this notification a number of days before the expiry of the tenancy agreement. Below is a typical letter on how to inform a monthly tenant that you will increase their rent. The landlord establishes a letter of rent increase to indicate the rules of the houses in the rental program. The writer may want to increase the rent paid. The reason the rent will be increased in the future is written in the letter. It is good to put this type of communication specifically in writing to each tenant. These laws are in place to protect tenants from unjustified increases that could supplant them. Here`s what landlords should pay attention to when increasing rental prices: When increasing rent, make sure the amount is competitive and yet reasonable compared to similar rents in your local market.
According to the Zillow Group Consumer Consumer Housing Trends Report 2018, when tenants experienced a rent increase, the typical monthly rent increase was 125 $US for those who moved last year and 50 $US for those who stayed. A friendly rent increase letter can make a difference if you discuss this with your tenants. Our rent increase model can help you compile a notification for your tenants, which is easy to understand. If you write a rent increase letter, be sure to include: This message will be communicated to you [X days] before your next rent payment. If you wish to continue your lease, the new monthly payment for the [New Monthly Rent] rental is required. Please note that all other terms of your lease [lease date] it remain in effect.