How to Raise Rent Without Losing Good Tenants

Protect your profit, keep your best renters, and stay compliant—with the right strategy (and Nextpad Homes)

Raising the rent is one of the trickiest moves you’ll make as a landlord.

On one hand, your costs are rising—property taxes, insurance, maintenance, even inflation.
On the other, you’ve got a great tenant you don’t want to lose.

So how do you strike the balance between profitability and retention?

The key isn’t just how much you raise the rent—it’s how and when you do it.

In this guide, you’ll learn:
✅ When to raise rent (and how often)
✅ How much is too much
✅ How to communicate the increase professionally
✅ And how Nextpad Homes makes rent increases easier, smarter, and legally sound

Why Raising Rent (The Right Way) Is Necessary

Let’s be clear: Raising rent isn’t greedy—it’s smart business.

If your rent stays flat year after year while your expenses increase, you’re quietly losing money.

What’s changed in 2025:

• Property insurance rates are up

• Vendor and contractor costs have risen

• City taxes and fees continue to climb

• Inflation continues to eat into margins

Even a modest 3–6% annual increase can help you:

• Stay cash flow positive

• Keep up with market rates

• Avoid large, tenant-shocking increases later

When (and How Often) Should You Raise Rent?

In most markets, landlords raise rent once per year, at lease renewal.

Best Practices:

• Give at least 60 days’ notice (check your local laws—some areas require more)

• Time it with lease renewal, not mid-lease

• Never raise rent out of frustration or reactively

• Keep increases consistent and predictable

✅ Nextpad Homes sends you automatic lease renewal reminders—so you never miss the ideal window to discuss rent changes.

How Much Should You Raise Rent?

There’s no one-size-fits-all number, but here’s a general guideline:

SituationSuggested IncreaseLong-term tenant, steady costs3–5%High inflation or rising expenses5–7%Under-market rent + high demand8–10% (with caution)Premium neighborhood or recent upgradesUp to 10%

Pro Tip: Compare your rent to local comps on Zillow, Rentometer, or Nextpad’s analytics.
You want to stay competitive—not overpriced.

How to Communicate a Rent Increase (Without Burning the Bridge)

Even a small increase can feel personal to a tenant if handled poorly.

Here’s what works:

1. Start the conversation early
   At least 60 days out. Great tenants need time to budget.

2. Explain why the rent is going up

   • Rising operating costs

   • Market adjustments

   • Property improvements

   • Inflation

3. Express appreciation
   Let them know you value them—and hope they’ll stay.

4. Offer benefits if possible

   • Lock in the new rate for 18–24 months

   • Upgrade a small item (fan, fixture, carpet cleaning)

   • Keep pet fees or utilities the same

Sample Message:

Hi [Tenant Name],

I wanted to let you know that your lease is up for renewal on [Date]. You’ve been a great tenant, and I appreciate how well you’ve cared for the property.

Due to rising maintenance and insurance costs, the monthly rent will increase from $1,500 to $1,560 (a 4% increase) starting with your next lease term.

If you’d like to renew for another 12 months at the new rate, I’ll send over the digital lease. Let me know if you have questions—I’d love to continue working with you!

Thanks again,
[Your Name]

✅ Nextpad lets you send pre-filled rent increase notices digitally—and logs all communication automatically.

Legal Do’s and Don’ts

DO:

• Follow all notice requirements (30–90 days depending on state)

• Put the increase in writing

• Tie it to lease renewal (not mid-lease unless allowed)

• Stay consistent across tenants (Fair Housing compliance)

DON’T:

• Surprise tenants with short notice

• Make verbal-only agreements

• Raise rent as retaliation or discrimination

• Use “backdoor” increases through new fees

✅ Nextpad Homes provides compliant lease templates and automated notice tools based on your state’s laws.

What to Do If Your Tenant Pushes Back

Not every tenant will accept the increase. That’s okay.

Options to consider:

• Offer a smaller increase for a longer lease term

• Keep the increase but offer a minor upgrade

• Allow month-to-month with a premium

• Stand firm if the new rate reflects market value—and prepare to relist

✅ Nextpad helps you relist fast with stored photos, descriptions, and application tools—just in case.

Smart Rent Increases Keep You Profitable and Professional

Raising rent doesn’t have to mean losing your best tenants.

When done with:

• Clear communication

• Respect for your tenants

• Legal compliance

• And a system that supports you…

…it becomes a natural part of running a successful rental business.

With Nextpad Homes, you get:

• Automatic lease renewal tracking

• Built-in rent increase notices

• Digital leasing and e-signatures

• Income analytics and market data

• Everything organized in one place

👉 Ready to raise rent—without losing your best tenants?

Use Nextpad Homes to manage lease renewals, communicate professionally, and protect your income like a pro.