Lease Renewal Offer with Suggested Rent Increase

Turns the manager's notes about a tenant, the current lease, and the rent situation into a renewal offer letter with two or three rent options for the manager to choose from.

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Before and after

BEFORE · what the owner typed

Manager's input: "need renewal offer for Wanda Harrington, 901 Kettlewood St unit 2B Pebblehurst. rent now 1,250. lease ends march 31. shes been here 3 yrs, always pays on time, only called maintenance twice. property taxes went up for us this yr, about 1,800 total across the building. I want to offer 12 month at 1,310 or 24 month at 1,285. also month to month at 1,375 if she doesnt want a long lease. new rent starts april 1. need her answer by feb 14, she can call me or email. Im Warren Hicks with Marshwood Property Management, 402-555-0160. no email given sorry. dont mention anything about repairs"

AFTER · what the skill produced

Rent options for Unit 2B

Option 1: 12-month lease, April 1 start. New rent $1,310. Increase $60 per month (4.8%). Yearly difference $720.
Option 2: 24-month lease, April 1 start. New rent $1,285. Increase $35 per month (2.8%). Yearly difference $420.
Option 3: Month-to-month, April 1 start. New rent $1,375. Increase $125 per month (10.0%). Yearly difference $1,500.

Math check: current rent $1,250. $1,310 minus $1,250 is $60, and $60 times 12 is $720. $1,285 minus $1,250 is $35, and $35 times 12 is $420. $1,375 minus $1,250 is $125, and $125 times 12 is $1,500.

Renewal letter

Marshwood Property Management
901 Kettlewood St, Unit 2B
Pebblehurst

Dear Wanda Harrington,

Thank you for three years as a tenant at 901 Kettlewood St. We appreciate that your rent has always come in on time, and we would like you to stay.

Your current lease ends on March 31. Here are the renewal options we are offering, each starting April 1:

12-month lease at $1,310 per month, an increase of $60 per month.
24-month lease at $1,285 per month, an increase of $35 per month.
Month-to-month at $1,375 per month, an increase of $125 per month.

The rent change reflects higher costs of operating the building, including an increase in property taxes this year. We recommend the 24-month lease if you plan to stay, since it has the smallest increase.

Please let us know which option you would like by February 14. You can reach me by phone at 402-555-0160. If you have questions about any option, call and I will go over them with you.

Sincerely,
Warren Hicks
Marshwood Property Management
402-555-0160

Before you send

Confirm the required notice timing and any limits on rent increases for your area, and check the letter against your lease language. If you are unsure, ask a qualified attorney.
The letter says rent starts April 1 for all options, as you told me.
I did not mention repairs, as you asked.

Questions for the owner

What email address should Wanda use to reply, if any?
Should the letter say what happens if she does not answer by February 14?
Do you want the tax increase mentioned with the $1,800 building figure, or left general as written?

What it does

Turns the manager's notes about a tenant, the current lease, and the rent situation into a renewal offer letter with two or three rent options for the manager to choose from. The rent figures come only from numbers the manager gives, and the manager makes the final call.

Use it when: Use when a property manager needs to write a lease renewal offer to a tenant with a suggested rent increase, such as: "write a renewal offer for unit 2B," "draft a renewal letter with a rent bump," or "what should I offer this tenant to renew."