Rent Increase Letter Template for Month-to-Month Tenancy

Month-to-month rental agreements offer flexibility for both landlords and tenants, but they also come with unique considerations when it’s time to implement a rent increase. Unlike fixed-term leases that typically only allow increases at renewal, month-to-month tenancies can see more frequent adjustments—provided landlords follow proper legal procedures.

This comprehensive guide provides landlords and property managers with legally compliant rent increase letter templates specifically designed for month-to-month tenancies in 2025. We’ll cover the essential legal requirements, state-specific notice periods, and best practices to ensure your rent increases are both effective and legally sound.

Legal Requirements for Month-to-Month Tenancies

Month-to-month rental agreements have distinct legal considerations when it comes to rent increases:

Shorter Notice Periods

While fixed-term leases typically restrict rent increases to the renewal period, month-to-month agreements allow for more frequent adjustments. However, landlords must still provide proper notice according to state law. These notice periods are often shorter than those required for lease terminations but must be strictly followed.

State-by-State Variation

Notice requirements vary significantly by state, with some requiring as little as 10 days’ notice and others mandating up to 90 days. The 2025 legislative landscape has seen several states extend these notice periods to provide tenants with more time to prepare for increases.

Recent Legislative Changes

Several states have updated their month-to-month tenancy laws in 2025:

Washington: Extended notice period from 60 to 90 days for all rent increases
California: Enhanced enforcement mechanisms for notice violations
Colorado: Implemented new documentation requirements for notices
New Jersey: Added specific language requirements for rent increase notices

Documentation Standards

All rent increase notices for month-to-month tenancies must be in writing and include:

Current rent amount
New rent amount
Effective date of increase
Statement of compliance with applicable laws
Landlord/property manager signature and date
Property address and unit number
Tenant name(s) as they appear on the rental agreement

Essential Components of the Letter

A legally compliant rent increase letter for month-to-month tenancies should include these key elements:

Property Identification Information

Clearly identify the rental property with:

Complete property address with unit number
Property name (if applicable)
Any identifying account or reference numbers

Current and New Rent Amounts

Explicitly state both the current and new rent amounts in specific dollar figures. For example:

“Your current monthly rent of $1,200.00 will increase to $1,260.00 effective July 1, 2025.”

Effective Date of Increase

Clearly specify the exact date when the new rent amount takes effect. This date must comply with state-specific notice period requirements and should typically coincide with the beginning of a rental period.

Reference to Lease Terms

Include a reference to the month-to-month rental agreement, such as:

“In accordance with your month-to-month rental agreement dated [Original Agreement Date], this notice serves to inform you of a rent adjustment.”

Signature Requirements

The notice must be signed and dated by the landlord or authorized property manager. Some jurisdictions require a physical signature, while others accept electronic signatures if properly authenticated.

Delivery Confirmation Elements

Include a method to document delivery and receipt, such as:

Certified mail tracking number
Acknowledgment of receipt section for the tenant to sign
Date of delivery notation

State-Specific Notice Periods

Notice periods for month-to-month tenancies vary significantly by state. Here’s a breakdown of current requirements as of 2025:

States Requiring 15-30 Day Notices

Several states require relatively short notice periods for month-to-month tenancies:

Alaska: 30 days
Arizona: 30 days
Florida: 15 days
Iowa: 30 days
Louisiana: 10 days
Missouri: 30 days
Montana: 30 days
Nebraska: 30 days
South Dakota: 30 days

States Requiring 45-60 Day Notices

Many states have implemented longer notice requirements:

California: 30 days for increases under 10%, 60 days for increases over 10%
Delaware: 60 days
Georgia: 60 days when no written lease exists
Hawaii: 45 days
Nevada: 60 days
New Jersey: One month
Vermont: 60 days
Virginia: 30 days

States Requiring 90+ Day Notices

Some states have extended notice periods to 90 days or longer:

Washington: 90 days for any rent increase as of 2025
Oregon: 90 days after first year of tenancy
New York: Varies by tenancy length (30-90 days)
Maryland: 60-90 days depending on tenancy length
Maine: 45 days, or 75 days when rent has increased 10%+ in the past 12 months

Special Requirements for Larger Increases

Some jurisdictions require longer notice periods for substantial increases:

California: 90 days’ notice is required for increases exceeding 10%
Maine: 75 days’ notice is required when rent has increased by 10% or more in the past 12 months
Seattle, WA: Additional documentation requirements for increases above certain thresholds

Local Ordinance Considerations

Many cities and counties have enacted their own ordinances that may require longer notice periods than state law. Always check local regulations, particularly in:

Major metropolitan areas
Rent-controlled jurisdictions
Areas with tenant protection ordinances

Customizable Template Sections

Basic Template Structure

Here’s a basic structure for a month-to-month rent increase letter:

[Your Company Letterhead]
[Date]

[Tenant Name(s)]
[Property Address]
[City, State ZIP]

RE: NOTICE OF RENT INCREASE

Dear [Tenant Name(s)],

This letter serves as formal notice that the monthly rent for the property you currently occupy at [Property Address] will increase from $[Current Rent] to $[New Rent] effective [Effective Date].

This increase complies with all applicable state and local laws, including the required notice period for month-to-month tenancies in [Your State].

Your tenancy will continue on a month-to-month basis under the same terms and conditions except for this change in the rental amount.

If you have any questions regarding this increase, please contact us at [Phone Number] or [Email Address].

Sincerely,

[Landlord/Property Manager Name]
[Company Name]
[Contact Information]

—————————-
TENANT ACKNOWLEDGMENT

I acknowledge receipt of this rent increase notice.

Signature: __________________ Date: __________

Adaptable Language for Different Scenarios

Customize your letter based on specific circumstances:

For modest increases:

“This adjustment reflects current market conditions and increased operating costs for the property.”

For larger increases:

“This adjustment is necessary due to significant increases in property taxes, insurance premiums, and maintenance costs. We have worked to minimize the impact while ensuring the continued quality of your housing.”

For first increases after a long period:

“Please note that this is the first rent adjustment in [X] months/years. We value your tenancy and have worked to keep this increase as reasonable as possible.”

Optional Clauses for Special Circumstances

Lease conversion option:

“We are also offering the option to convert your month-to-month agreement to a fixed-term lease of [6/12] months at a reduced rate of $[Lower Amount]. Please contact us by [Date] if you would like to discuss this option.”

Improvement notification:

“This increase will help fund planned improvements to the property, including [specific improvements], which are scheduled to begin on [date].”

Payment method update:

“Please note that we have also updated our payment methods. You can now pay your rent via [new payment methods] in addition to existing options.”

Professional Tone Recommendations

Maintain a professional, respectful tone throughout your letter:

Use clear, straightforward language
Avoid confrontational or demanding phrasing
Express appreciation for the tenancy when appropriate
Provide contact information for questions or concerns
Maintain a business-like tone while being courteous

Delivery Methods and Documentation

Acceptable Delivery Options

Most states specify acceptable methods for delivering rent increase notices:

Personal Delivery: Hand-delivering the notice directly to the tenant, often with a receipt or acknowledgment.
Certified Mail: Many states explicitly recognize certified mail with return receipt as a valid delivery method.
Regular Mail: Some states allow regular mail, but proving delivery can be challenging without additional documentation.
Electronic Delivery: Increasingly accepted if the tenant has consented in writing and delivery can be verified.

Proof of Delivery Requirements

Documenting delivery is crucial, especially for month-to-month tenancies where disputes may arise:

Keep copies of all notices with dates and delivery methods noted
Retain certified mail receipts or delivery confirmations
Document in-person deliveries with a delivery log
Save electronic delivery receipts and read confirmations
Consider having a witness present for in-person deliveries

Electronic Delivery Considerations

If using electronic delivery methods:

Ensure the tenant has explicitly consented to electronic communications in writing
Use delivery and read receipt functions when available
Follow up with a physical copy if no confirmation is received
Save electronic communications in a secure, accessible format
Ensure the electronic notice includes all required information

Record-Keeping Best Practices

Maintain comprehensive records of all rent increase communications:

Keep records for at least the duration of the tenancy plus your state’s statute of limitations
Organize notices by property, unit, and tenant
Document any discussions or negotiations related to the increase
Maintain records of tenant responses or acknowledgments
Create a calendar system to track notice periods and effective dates

Special Considerations for Month-to-Month Tenants

Frequency Limitations on Increases

While month-to-month agreements allow for more frequent adjustments than fixed-term leases, there are still limitations:

California: Limits increases to twice per year
Oregon: Prohibits increases during the first year of tenancy
New Jersey: Many municipalities limit increases to once per year
Washington: New 2025 legislation limits increases to once per 12-month period

Even in states without explicit frequency limitations, excessive or frequent increases may be deemed retaliatory or harassment in some circumstances.

Tenant Response Options

Month-to-month tenants have several options when receiving a rent increase notice:

Accept the increase and continue the tenancy
Negotiate the amount or effective date
Terminate the tenancy with proper notice (typically 30 days in most states)
Request conversion to a fixed-term lease with locked-in rates

Conversion to Fixed-Term Lease Offers

Many landlords find success by offering month-to-month tenants the option to convert to a fixed-term lease:

Offer slightly lower rent increases for tenants who sign 6-12 month leases
Highlight the rent stability benefit for tenants
Consider seasonal timing for lease conversion offers
Provide clear comparison of month-to-month vs. fixed-term options

Negotiation Strategies

Be prepared for negotiation with month-to-month tenants:

Consider phased implementation of larger increases
Be open to slight adjustments to retain good tenants
Offer improvements or upgrades in conjunction with increases
Consider longer notice periods than legally required as a goodwill gesture

Related Resources

For more information on rent increase letters and related topics, check out these helpful resources: