With the inflation, it is not possible for a building owner to keep a steady amount of rent but he has to increase the rent every 6 months or after a year. It depends on the agreement he signed with the tenants i.e. if they agreed to increase the rent after 1 year, the owner can’t ask for a raise before 1 year. To notify the tenants that the rent has been increased, building owners send a proper document called rent increase notice.
Brief Description of Rent Increase Notice:
Most of the time when a building owner lends the building to a tenant, they both agree on mutual agreement and as they sign a contract, they both are bound to obey the clauses and follow the rules. For example, the owner adds the clause that the tenant won’t vacate the building before 6 months and after 1 year, they will renew the contract or the tenant adds the clause that the owner won’t increase the rent for 6 more months and so on. In this situation when the owner wants to increase the rent of the building either before or after 6 months of the contract, he has to inform the tenant and ask him to mutually agree on the increase in the rent.
The letter that the owner rights to the tenant about the increase in the rent is called the rent increase notice and it is pretty common these days. This way if the tenant agrees to the increase in the rent, they can continue their contract or agreement where on the other hand, if the tenant has any kind of issues, he can ask the owner not to increase the rent or he can terminate the agreement. It is very important to mention in the notice that the increase in the rent is for one specific tenant or it is for the whole building because it will save the owner and the tenant from a lot of trouble in the future.
Elements of a Rent Increase Notice:
- Name of the owner of the building
- Address and name of the building
- Name of the tenant
- Date when he rented the building
- Reference number to the agreement they both agreed on (tenant and owner)
- Amount or percentage increase in the rent
- Additional benefits that the tenants will get with the raise in the rent (optional)
Where to find a Rent Increase Notice?
There are many ways where the building owners can find these notices. For example, they can hire a lawyer who prepares the notice and assists the owner in further procedures where on the other hand, the owner can also download different templates of rent increase notices from internet without any charges. Also if one doesn’t want to do any of the above, he can also prepare the notice by himself. He just needs to add the information that we have enlisted above and after signing it, he can send it to the tenants and wait for their reply or response.
Here is preview of a free Rent Increase Notice Sample created using MS Word,
Here is download link for above shown Rent Increase Notice Sample,