Lease Renewal Template and Rent Increase Notice: Free Templates for Landlords (2026)

Lease renewal is the moment when good landlords retain good tenants and adjust terms for the next year. Sending the renewal notice 60-90 days before expiration gives tenants time to decide, gives you time to find a replacement if they decline, and avoids the awkward last-minute scramble that leads to vacancies. This page provides the renewal letter, rent increase notice, and calculator you need.

Updated 10 April 2026

When to Send a Renewal Notice

Best practice: 60-90 days before the current lease expires. This gives you time to negotiate terms, find a replacement if the tenant declines, and avoid the worst-case scenario: an unexpected vacancy.

90 days

Send renewal offer

60 days

Deadline for tenant response

30 days

Begin marketing if no renewal

Lease Renewal Letter Template

[Date] [Tenant Name(s)] [Property Address] Dear [Tenant Name], Your current lease for the property at [Address] expires on [Expiration Date]. We are pleased to offer you a renewal for an additional [12]-month term, commencing [New Start Date] and terminating [New End Date]. Proposed terms for the renewal period: - Monthly rent: $[NEW AMOUNT] (current: $[OLD AMOUNT], increase of $[DIFFERENCE]) - All other terms of the original lease dated [Original Date] remain unchanged - [List any other changed terms] Please indicate your decision by [Response Deadline, typically 30 days from this letter]: [ ] I accept the renewal on the terms above [ ] I would like to discuss the terms [ ] I will not be renewing and will vacate by [Expiration Date] If we do not receive a response by [Deadline], the lease will [convert to month-to-month at the proposed new rate / terminate on the expiration date] per the terms of your current agreement. The security deposit of $[AMOUNT] currently on file will carry forward to the renewal term. No additional deposit is required. Sincerely, [Landlord Name] [Contact Information]

Rent Increase Notice Template

This notice is separate from the renewal letter. Use it when increasing rent on a month-to-month tenancy or at lease renewal. Check your state's required notice period before sending.

NOTICE OF RENT INCREASE Date: [DATE] To: [Tenant Name(s)] Property: [Address] This notice is to inform you that effective [Effective Date], the monthly rent for the above-referenced property will increase from $[CURRENT AMOUNT] to $[NEW AMOUNT]. This increase of $[DIFFERENCE] ([PERCENT]%) is based on [market conditions / increased operating costs / CPI adjustment / property improvements]. This notice complies with [STATE] law requiring [30/60/90] days advance notice of rent increases. All other terms of your [lease agreement / rental agreement] dated [DATE] remain unchanged. If you have questions or concerns, please contact me at [Phone/Email]. Sincerely, [Landlord Name]

Required Notice Periods for Rent Increases

California: 30 days (under 10%), 90 days (over 10%). New York: 30-90 days depending on tenancy length. Oregon: 90 days. Most other states: 30 days for month-to-month tenancies. Always verify your state's requirement on the state guide.

How Much Should You Increase Rent?

There are three standard methods for calculating a fair rent increase. The best approach uses all three as inputs and picks a number within the range. The national average annual rent increase is 3-5% (Zillow 2025).

CPI-Based

Match the Consumer Price Index for your metro area. If CPI is 3.2%, increase by 3.2%. This keeps your rent aligned with inflation. Data source: Bureau of Labor Statistics (bls.gov).

Market Comparison

Check comparable units on Zillow, Apartments.com, and Craigslist. If similar units rent for $1,650 and your tenant pays $1,500, a $100-$150 increase is market-justified. Be specific: same size, condition, location.

Cost-Based

Add up your increased costs: property tax increase, insurance increase, maintenance cost increase. If costs rose by $150/month, a $150 increase maintains your margins. Keep receipts to justify the increase.

The turnover test: Before finalizing an increase, ask: if this causes the tenant to leave, can I achieve the new rent with a new tenant? Factor in vacancy costs ($3,500-$5,000 per turnover), marketing time (2-4 weeks average), and seasonal timing. An occupied unit at $1,500/month earns more than a vacant unit at $1,650/month.

Rent Increase Calculator

Current Monthly Rent

Local CPI (%)

Years Since Last Increase

Suggested Increase Range

$1,530 - $1,575/month

Based on three calculation methods

CPI-Based:3.2% x 1 year(s) = 3.2% increase

$1,548/mo

Market Comparison:3-5% annual

$1,545 - $1,575/mo

Cost-Based:2-4% annual (taxes, insurance, maintenance)

$1,530 - $1,560/mo

Turnover test: If this increase causes the tenant to leave, your estimated turnover cost is $3,750 (vacancy, marketing, cleaning, repairs). Factor this into your decision.

Rent Control and Stabilization Limits

If your property is in a rent-controlled jurisdiction, your increase is capped regardless of market conditions. Check this table before sending a rent increase notice.

Jurisdiction	Maximum Increase	Applies To
California (statewide, AB 1482)	5% + local CPI (max 10%)	Buildings 15+ years old, most single-family excluded
Oregon (statewide)	7% + CPI	Buildings 15+ years old
New York City (rent stabilized)	Set by Rent Guidelines Board annually	Buildings with 6+ units built before 1974
San Francisco	60% of CPI increase	Buildings with 2+ units built before 1979
Los Angeles (RSO)	3-8% (set annually)	Buildings with 2+ units built before 1978
Washington D.C.	CPI + 2% (elderly: CPI)	Rental units built before 1975
St. Paul, MN	3%	Most residential rental units
Portland, OR	State cap applies (7% + CPI)	Per statewide Oregon law

This table covers the major rent control jurisdictions but is not exhaustive. Many cities have local ordinances. Check your local housing authority.

Non-Renewal Notice Template

When you choose not to renew a lease, send a formal notice within the required period. Some states and cities now require "just cause" for non-renewal of long-term tenants.

NOTICE OF NON-RENEWAL Date: [DATE] To: [Tenant Name(s)] Property: [Address] This notice is to inform you that your lease agreement dated [DATE], which expires on [EXPIRATION DATE], will not be renewed. You are required to vacate the premises and return all keys on or before [EXPIRATION DATE]. Your security deposit of $[AMOUNT] will be returned in accordance with [STATE] law within [DAYS] days after you vacate, minus any lawful deductions. Please provide a forwarding address for the deposit refund. [If applicable: This non-renewal is based on the following reason: (describe, if just cause is required by your jurisdiction).] Sincerely, [Landlord Name] [Contact Information]

What Can Change at Renewal

Can Change

Rent amount (with proper notice and within limits)
Pet policy (adding or removing restrictions)
Utility allocation
Parking arrangements
Lease duration (6, 12, 18 months)
Late fee amounts (within state limits)

Cannot Change

State-mandated disclosures (must remain)
Habitability obligations (cannot waive)
Fair Housing protections
Security deposit limits (state law governs)
SCRA military protections (federal law)
Retaliatory terms (e.g., increasing rent as retaliation for complaints)