Rent Increase Proposal Letter

A rent increase proposal letter is a letter that is written by a landlord or owner, who has rented out his property to someone. It is addressed to the tenants of that property. In this letter, the landlord proposes and informs the residents, that the payable rent amount will be increased from a certain date.

Usually, a landlord cannot randomly increase the rent whenever he wants to. It is stated in a legal contract about when, and to what extent, the owner is allowed to increase the rent. In addition, if the landlord is satisfied with the lodgers, and the condition of his house, he may not increase the rent to a large extent, as the opposite might force the residents to relocate to a cheaper place.

When the due date arrives, as per the legal contract, and the landlord decides to increase the rent, he needs to inform the residents formally through a rent increase proposal letter. This makes the process of rent revision smooth as well as the formal letter may serve as legal evidence or can use as a reference for various purposes.

The information included in this letter needs to be clearly stated to avoid any sort of misunderstanding. The changed amount and the effective date of the change are critical to be mentioned vividly.

This letter is drafted while considering:

  • The owner’s requirements.
  • The satisfaction level of the residents.
  • The condition of the property.
  • The payment history of the residents.
  • The capacity of the residents to pay, etc.

However, generally, a template of the rent increase proposal letter contains the following details:

  • Date
  • Details of the residents.
  • Details of the landlord.
  • The proposed rent hikes.
  • Reference to the contractual terms and the due date.
  • The effective date of the changed amount.
  • Show satisfaction with the residents.
  • Provide any offers, such as rolling over of the contract without any additional expenses.
  • Seek cooperation.
  • Show availability for any communication.
  • Gratitude
  • Salutations and signature.

When the lodger receives this letter, he may accept the rent increase, as it was mutually agreed on, at the time of the contract signing between the two parties. However, some lodgers may try to approach the owner to bargain the rent increase. It is at the owner’s discretion if he wants to entertain the bargain or not.

Sample Rent Increase Proposal Letter


Dear Mr. Joseph,

I am writing this proposal letter about one of the clauses in our contract, which states that the landlord can bring up to a 5% increase in the rent every year.

We rented out our house to your family on 1st June 2029, and now a year has passed, and the rent increase is due. There will only be a meager increase of 5% in your rent amount of $[amount], which will become $[amount].  This change will be effective from 1st July 2029, as per the contract.

We are glad that we chose you as our lodgers. You are taking care of our house completely, and the house is still in the same condition, in which we rented it out. In addition, you have always paid the rent money on time, every month. Our contract will expire on 1st June 2029. However, we will be more than happy to roll it over without any extra charges if you would be interested.

We seek your cooperation in the rent hike as well. We hope you will understand the contractual clause, and the process of increasing the rent will not affect our relationship.

You can contact us at [contact].

Thank you.


Jennifer Watson.


Rent Increase Proposal Letter