Rent increase letter
The increase
For the letter
New monthly rent
R9 010.00
- Increase per month
- R510.00
- Increase
- 6%
How we worked it out
- Current rent per monthR8 500.00
- Increase per monthR510.00
6.00% of the current rent
- New rent per monthR9 010.00
- Extra rent over 12 monthsR6 120.00
Your letter
Notice of rent increase
To the Tenant
From: ____________________ (the Landlord), ____________________
To: ____________________ (the Tenant)
Dwelling: ____________________
Date: ____________________
Rent increase
In terms of our lease, I give you written notice that the monthly rent for the dwelling will increase from R8 500.00 to R9 010.00, an increase of R510.00 a month (6.00%).
The new rent applies from ____________________. Please pay the new amount from the rent due on or after that date. All other terms of the lease stay the same.
I will continue to give you a written receipt for each payment.
If you have any questions about this increase, please contact me. If we cannot agree, either of us may ask the Rental Housing Tribunal in our province for help; its services are free.
Yours sincerely
______________________________
____________________ (Landlord)
Received by the Tenant: ______________________________ Date: ____________
Giving notice properly
- Check the escalation clause in the lease first: the percentage, the date and the notice it needs.
- Send the letter in a way you can prove, such as email with a read receipt, or by hand with the tenant signing for it.
- Keep giving a dated receipt for every payment (s5(3)(a)).
Typical escalations
Many leases use a fixed yearly escalation agreed at the start. Whatever you choose, it must be written in the lease and be reasonable. A Tribunal considers supply and demand and a realistic return for the landlord when it rules on rent (s13(5)).
Frequently asked questions
Is there a legal maximum rent increase in South Africa?
No. Rent control was repealed by the Rental Housing Act. The lease must state the rent and any escalation, which must be reasonable (s5(6)(c)). A Rental Housing Tribunal can rule on exploitative rentals in a complaint (s13(4) and (5)).
Can the landlord increase the rent during a fixed-term lease?
Only if the lease allows it, usually as a yearly escalation on the anniversary. If the lease sets a fixed rent for the term, the landlord needs the tenant's agreement to change it.
How much notice is needed?
Follow the lease. For a month-to-month lease, give at least one month's written notice, the same as the notice to end the lease (s5(5)). The calculator shows the latest date to send the letter.
What if a Tribunal complaint is lodged?
From the date a complaint is lodged until the Tribunal rules or three months pass, the tenant keeps paying the rent that applied before the disputed increase (s13(7)(b)).