Most tenants expect a slight rent increase at lease renewal time of say $20-50 or so. But
if you spring a $200 or more increase on them after not having increased the rent for
five years, you’ll likely get some negative feedback. A good rule of thumb is to raise the
rent about 3-5 percent a year.
If you have an excellent tenant that you are trying to convince to renew, you might want
to waive the rent increase if they will sign for another year. After all, you can always
make up the difference by raising the rent when he/she finally moves out.
An excellent tenant is worth far more than any rent increase.
Send notice 60 days before lease end
Sending a rent increase letter (see below) this far in advance lets you know what the
tenant’s intentions are. If he or she doesn’t plan to renew the lease, you have time to
start marketing and showing the place without having a vacancy period.
In the rent increase letter, which you can send through regular mail or email, thank your