What Is A Rent-Increase Notice? (2026)

What Is a Rent-Increase Notice?

This notice tells a tenant that their rent is increasing. At a minimum, it should state what the new rent amount will be and when the change will take effect.

When a Landlord Can Raise Rent

Part of smart rental property management is knowing when you can raise rent. Each state sets its own specific guidelines, but generally, rent can increase in either of the following situations:

• A fixed-term lease has ended
• A tenant is renting a property month-to-month, and you give them proper notice

Some increases are illegal under the Fair Housing Act. For example, raising rent to retaliate against a tenant who reported you to code enforcement is unlawful, as is selectively raising rent for tenants in protected classes.

How to Calculate a Fair Rent Increase

One of the best ways to decide on an increase is to look at what comparable properties rent for. Many landlords increase rent by 1%–2% each year to keep up with inflation.

A few states limit annual increases. For example, under the landlord-tenant laws in California, increases may be up to 5% plus the increase in the cost of living, with a maximum total increase of 10%.

How Much Notice Landlords Must Give

Each state sets its own laws regarding notice. In general, month-to-month tenants must be given 30 days' notice. Some states have no laws at all regarding notice. Keep in mind that you can’t raise rent in the middle of a fixed-term lease.

What to Include in a Rent-Increase Letter

Your notice should include the following:

• Tenant name(s) and property address/unit number
• Date of the notice
• The current rent
• The new rent amount
• The dollar and percentage increase
• When the increase will go into effect

If payment options have changed, mention that, too.

Sample Rent-Increase Letter Template

[Date]

[Tenant name(s)]

[Address/unit number]

RE: Notice of rent increase

Dear [tenant names],

Please be advised that starting [date], monthly rent will increase from [current amount] to [future amount]. This is a change of $[X], or [X]%. Rent will still be due by the [date] of each month.

Thank you for renting with us.

Sincerely,

[Your name and/or property management company name]

[Your contact info]

How to Deliver a Rent-Increase Notice

It’s a good idea to send your notice via certified mail so your tenant must sign for it. That way, you’ll have evidence that they received it. In-person delivery and email can be effective, but some states don’t recognize email as an official delivery method.

The Importance of Clear Communication

If you’re a landlord, communicating clearly with your tenants can help prevent countless disputes. Whether that communication happens in person, via email, or through notices and other landlord forms, it’s a crucial first step toward positive landlord-tenant relationships.