There comes a time for every landlord when the rent has to be raised. It is not a pleasant subject from the tenant’s point of view, but it must not be overlooked. You must not procrastinate it because every day it is put off, it is money out of your pocket. Food out of your children’s mouths. Think about it at the supermarket checkout line. Every increase you don’t enforce really adds up.

You should have regular rent increases, even if only by small amounts. The tenant that is used to the same rent for a long period of time usually gets offended when the rent finally must increase, so it is better to make smaller gradual annual rent increases.

You can address the subject of raising the rent with the tenant in a conventional or LPA Lease agreement. By having a plan for scheduled rent increases, you'll get the equivalent of a raise in salary very year.

Let’s say you have only three house rentals that you don’t increase until you re-rent. Let’s say your tenants stay an average of 3 or 4 years each. Let’s also say the increase they should have gotten per year is only $25.00.

WOW! That’s $75.00 per month more for just the first year! Multiply by 12 months and that is $900. x 3 years = $2,700. just for the initial first year increase. Add the second year’s increase of $900. (assuming it’s still a $25. increase) Then add the third year’s increase of another $900.

1st year total increase after 3 years = $2,700.
2nd year increase after the 3 years = $1,800.
3rd year increase totaled = $ 900.

Total accumulated from the 3 annual $25. increases = $5,400.

Could you use a spare $5,400. about now? I know I can.
I know these numbers are small, but think about the possibilities if you have more properties. Most landlords with more than a few properties are no strangers to the art of increasing rent.

Obviously, you know there are many reasons the rent needs to be increased.

• rising taxes
• high mortgage, negative cash flow
• escalating cost of living
• lease enforcement, rent increase agreed in lease
• high maintenance property
• high maintenance tenant
• college tuition
• want to make tenant leave rental
• how the tenant is treating the rental
• many more reasons

I recommend using good Rent Increase Letter to notify tenants that you are raising the rent. It tells the tenants the amount of their rent increase, when the increase takes effect, and the new payment amount. It is a polite notice that reaffirms that all the terms and notice periods agreed in their lease will still continue to remain in full force.

It is important to remember proper notice periods as agreed in your lease or rental agreement. Always remember that your 30 or 60 day notice period begins on the first day of your next rent period, so serve it early. Also, keep in mind that you can give notice to raise the rent whenever you want, but your lease may not allow it until it is time to put together your Notice of Lease Renewal.

I also send a Tenant’s Intention to Vacate Letter along with the Increase Letter in case the tenant does not agree to the proposed rent adjustment and would rather move out. Sending the Intention to Vacate letter also lets the tenant know that you are OK with the idea of them moving out.

I’m often asked, “How much should we raise the rent?”
Well, that depends on a few things...

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FREE FORMS
Notice to Renew or Vacate and Rent Increase Reminder

Do your tenants sometimes forget about the annual increase they've agreed to in the lease?

Notice to Renew Lease or Vacate
is a combination form which can be used as a lease renewal form or a tenant's notice to vacate. The form provides for a rent increase, as well as the preservation and extension of all the terms and conditions in the lease agreement. The landlord should send this form to the tenant at least one or two months before lease expiration to give the tenant an opportunity to consider any rent increase and to respond with enough notice time to vacate or renew tenancy according to lease requirements.

Rent Increase Reminder
When your lease provides for annual increases, often many tenants forget to send the increased amount of rent at the scheduled time. This is a simple reminder that their rent increase is already agreed and scheduled to increase. Send during the month previous to the increase.

click for MORE FREE FORMS

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Ask the Attorney

The Landlord Protection Agency® presents John Reno, Esq., a highly experienced Landlord - Tenant attorney based on Long Island, NY.

John Reno also does Mortgage Loan Modifications (Nationwide).
(Mention The LPA for a 10% discount!)

Dear Mr. Reno:
Can a no smoking clause be legally added to an existing month to month lease agreement with a 30 day notice in Suffolk County??
I believe the month to month lease in question is a standard type lease. The Condo Board is the landlord in this situation. The unit is in foreclosure and the Board is renting the unit until the banks come in to take over. In the meantime the tenant is smoking in the unit and the smoke is permeating into my apt above. I am asking the board to put a no smoking clause in the lease to resolve this issue.
Is this legal for the board to do???
Thank you,
Sharon K., NY

A: It can be done. The problem is enforcement. What if the tenant continues to smoke? Will the condo board be able to evict him? That's the problem. It's difficult to prove and whose going to pay for it? It's a 4 to 6 month endeavor, all while the building's being lost to foreclosure. I don't see it happening.

If you have a landlord tenant problem you'd like to ask a question about, please feel free to e-mail me your question.
Submit a landlord / tenant question for Mr. Reno
Please try to keep your questions as short and to the point as possible.

Read more from John Reno, Eviction Attorney

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Wealth Secrets and Quotes

"A dream doesn't become reality through magic; it takes sweat, determination and hard work." - Colin Powell

"The more clarity you have, the more powerful your goals are." - Robert G. Allen

"I learned that the easiest and cheapest eviction is the one when the tenants never get possession of your property!" - John Nuzzolese

"I know the landlord business can be a tough job, but easy jobs don't pay well." - Lou C., LPA Member

"How much did your last tenant problem cost you?" - John Nuzzolese

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FREE Tenant Credit Reporting for LPA Members!

Have you ever been beaten by a tenant on the rent?
Most of us have and unfortunately, it is one of the costs of doing business as a landlord.
On the bright side, remedies are available. If you have documented your tenancy with the proper paperwork including a rental application, lease agreement, late notices, etc., you may have a chance of collecting.

Credit bureau reporting is an option in which many modern landlords are beginning to participate....

Click here for the full article

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