When issuing a rent increase notice to a tenant, there are a few important things to consider:

1. Is issuing the rent increase notice mandatory?
2. How much time should you give between the notice and the rent increase going into effect?
3. How should you issue the notice?

If you are unfamiliar with the process, then there is no need to worry. Padleads is here to run you through everything, to save you from any hassle. So, let’s get right into it.

Is it compulsory to issue a notice?

This depends on whether or not the tenancy is periodic or fixed. To elaborate, a periodic tenancy does not have an end date, whereas a fixed term tenancy does.

For periodic tenancies, you must give a rent increase notice. However, when exactly you should give it depends on the type of periodic tenancy, which we will discuss later.   

For fixed term tenancy, the matter is different. As the landlord, you are not obligated to hand out a rent increase notice. However, this does not mean that you can increase the rent whenever you want. Rather, there are two conditions that must be met.

1. One year, or 365 days, must have passed since the tenant moved in.
2. The lease agreement must have expired. Therefore, you cannot increase the rent halfway through the lease. Instead, you have to wait until the term has ended.

For example, say the lease expires 10 months after the tenant has moved in. You cannot increase the rent yet, as 365 days have not passed. Alternatively, you can opt to renew the lease. You can only increase the rent after this new lease has expired.

When should you give the notice?

As mentioned previously, the length of the rent increase notice period depends on the type of tenancy.

For periodic tenancies, you will find that there are three main types:

1. A monthly periodic tenancy. In this case, you need to give the notice at least 3 tenancy months in advance.
2. Weekly periodic tenancies. The rent increase notice period in this case is at least 12 tenancy weeks.
3. Other periodic tenancies. This includes biweekly or bimonthly tenancies. For periodic tenancies that are not monthly or weekly, the rent increase notice period is a minimum of 90 days.

For fixed term tenancies, as we discussed, the landlord can enforce the rent increase without notice. However, you should still consider giving a notice. Issuing a notice cements the rent increase in writing. Thus, this will prevent any potential arguments or confusion in the future. As such, it’s best to give a notice at least two months before the lease expires.

How should you issue the notice?

A letter to a tenant to raise rent is presented as a written document. You can deliver the document by hand, or choose to mail it. However, it’s usually better to send it through the mail. This is because you’ll have a certified record of the tenant having received the notice. Thus, your tenant won’t be able to deny having received the notice.

Furthermore, landlords should keep a copy of the notice, in the event that the original is misplaced or damaged. Additionally, the legitimacy of the document must be confirmed. For this, the signature of the landlord or a representative of the landlord must be included in the document.

You need to keep in mind that, under no circumstances should the notice be given orally. This is because oral notification cannot be attested by a court – the notice must be written.

As you can see, the process is quite straightforward. So next time you need to increase the rent, keep these points in mind. That way, the process will be stress free and without any hassle!