Train: Principles to Help Raise the Rent & Keep Happy, Long-term Residents Sample Letter Included

Frustrated with trying to draft a Rent Increase Letter? Yes, this is one of the more challenging letters to write. No one likes to raise the rent or have it raised. Either way, it’s uncomfortable. We get it. Let’s make this as easy as possible with 5 principles.

Principle 1. In our economy, prices are always going to increase. As long as the government continues to create money out of thin air and produce a hidden tax called inflation where they steal the value of the dollar, price will go up. Accepting the broken system we have doesn’t make the reality of rent increases any better, but it does help give context to it.

Principle 2. When you provide an excellent service, you will find people who are still happy to pay you rent even if it increases. As you craft your business, you’ll have confidence in the housing you provide. You’ll find ways to increasingly provide value to your residents and to stay competitive. Don’t be afraid to charge more and protect your profits when you have built a business on constant improvement as well.

Principle 3. Train your Residents that rent will go up each year. Write it into your lease. Repeat it in different ways, always staying positive, that “we are all in this together.” It’s never an us-against-them mentality. It’s always “let’s do this together.”

Principle 4. Give them plenty of time - at least 30 days - and give them as much choice in the matter as possible. If it’s a lease renewal, give them an option for lower increase with longer lease duration. Or, they can choose a monthly lease with higher rent increase. That autonomy helps take the edge of a rent increase when they feel they at least have some say in how much the rent goes up.

Principle 5. Never apologize for a rent increase. But don’t be snarky about it either. It can be tempting to go to either extreme. Stay professional. Don’t respond emotionally if a resident responds with anger - usually via text. Always remain understanding and calm and firm.

Here is an example of a Rent Increase Letter: