Rent Increase Letter Template (English) for Bangladesh

Raising the rent is one of the most delicate conversations between a landlord and tenant. Done badly, with a sudden phone call or a note pushed under the door, it can sour a good relationship or push a reliable tenant to leave. Done well, with a clear, polite, written notice that gives enough time and explains the new terms, most tenants accept it calmly. This page gives you a ready-to-use rent increase letter template in English, plus several variations for flats, shops, offices and agreement-based escalations, with guidance on what to include and what to avoid in Bangladesh.

Copy the template that fits your situation, replace everything in [square brackets], and print it on plain paper or your letterhead, or send it as a PDF by email or WhatsApp. Keep a signed copy for your records.

Before You Write: Check These Points

• Your agreement: does it already include a rent escalation clause (for example 5% every year)? If yes, the letter is a reminder of what was agreed. If no, the increase is a proposal that the tenant can accept, negotiate or respond to by giving notice.
• The law: the Premises Rent Control Act 1991 contains provisions on standard rent and on increasing rent, including how often rent can be raised. Make sure your increase is consistent with the law. Our guide to rent increase rules in Bangladesh explains the general framework. This page is general information, not legal advice.
• Timing: give reasonable advance notice. Many landlords give at least one to three months, and more for commercial tenants.
• The amount: check that the new rent is reasonable compared with similar properties nearby and with your actual cost increases.
• Your relationship: for a long-term, reliable tenant, consider a smaller increase or a phased increase.

Working out a fair new rent

Before filling in the template, look at three numbers: what similar flats or shops nearby are actually renting for (ask around, check To-Let listings, and treat online prices as rough guides), how much your own running costs have risen since the last increase, and how long the tenant has been with you. A tenant who has paid on time for years and kept the property well is worth more than a few hundred Taka a month extra. If market rent is far above the current rent, a phased increase (Template 4) is often the fairest route. If your costs have barely changed, a small increase, or none this year, may keep a valuable tenant for longer.

What Every Rent Increase Letter Should Include

Template 1: Standard Rent Increase Letter for a Flat (Residential)

Use this for a family or individual tenant in a house or apartment where the increase is not fixed in the agreement.

Date: [DD Month YYYY]

To: [Tenant's full name]

[Flat number, floor], [Building name / house number], [Road, area], [City]

Subject: Notice of rent increase for [Flat number]

Dear [Mr/Ms/Mrs Tenant's name],

Thank you for being our tenant at [flat number, building name] since [month and year of move-in]. We have appreciated your timely payments and the care you have taken of the flat.

I am writing to inform you that the monthly rent for the flat will be revised as follows:

Current monthly rent: Tk [current amount]

New monthly rent: Tk [new amount]

Increase: Tk [difference] ([percentage]%)

Effective from: [1 Month YYYY] (rent for [Month YYYY] onwards)

This revision is due to [brief reason, e.g. increased costs of maintenance, staff salaries and utilities for the building over the past year]. All other terms of our agreement dated [agreement date], including the service charge of Tk [amount] and the security deposit, remain unchanged.

If you would like to discuss this, please contact me at [phone number] or meet me by [response date]. Kindly confirm your acceptance by signing the copy of this letter and returning it to me.

Thank you for your understanding and cooperation.

Sincerely,

[Landlord's name]

[Address]

[Phone number]

Signature: ____________

Template 2: Rent Escalation Reminder (Increase Already in the Agreement)

Use this when the rental agreement already says the rent will rise by a set amount or percentage. The letter is a friendly reminder, not a new demand. If you need to explain escalation clauses to tenants, see our glossary entry on what rent escalation means.

Date: [DD Month YYYY]

To: [Tenant's name], [Flat/shop number], [Address]

Subject: Scheduled rent revision as per agreement dated [agreement date]

Dear [Tenant's name],

As per clause [clause number] of our rental agreement dated [agreement date], the monthly rent is to increase by [percentage/amount] every [one/two] year(s).

Accordingly, from [1 Month YYYY], the monthly rent will be Tk [new amount], an increase of Tk [difference] from the current rent of Tk [current amount].

Your next invoice, for [Month YYYY], will reflect the new amount. Payment date and method remain the same: by the [day] of each month via [cash with receipt / bank transfer / bKash / Nagad].

Please feel free to contact me at [phone number] if you have any questions.

With thanks,

[Landlord's name], [Signature], [Phone]

Template 3: Rent Increase Letter for a Shop or Commercial Tenant

Commercial tenants often need more notice to plan budgets, and the letter may also cover the service charge.

Date: [DD Month YYYY]

To: [Business name], Attention: [Proprietor / Manager name]

[Shop number, floor], [Market / building name], [Address]

Subject: Revision of rent for Shop No. [number]

Dear [Name],

We value [business name] as a tenant at [market/building name] since [year].

This letter gives notice that, with effect from [1 Month YYYY], the monthly rent for Shop No. [number] ([area] sq ft) will be revised from Tk [current rent] to Tk [new rent], an increase of [percentage]%.

[Optional: The monthly service charge will be revised from Tk [current] to Tk [new], reflecting the actual increase in costs of security, cleaning, generator fuel and common electricity. A summary of these costs is available on request.]

All other terms of the lease dated [date], including the security deposit and payment schedule, remain unchanged.

We would be glad to meet to discuss this at your convenience before [response date]. Please confirm acceptance in writing by that date.

Yours sincerely,

[Landlord / Market owner name], [Designation if company], [Signature], [Phone / email]

Template 4: Phased (Stepped) Rent Increase Letter

Useful when the gap between current rent and market rent is large, and you want to avoid a shock for a good tenant.

Subject: Phased revision of rent for [Flat/Shop number]

Dear [Tenant's name],

To keep the increase manageable for you, we propose to revise the rent in two steps instead of one:

From [1 Month YYYY]: Tk [step 1 amount] per month

From [1 Month YYYY]: Tk [step 2 amount] per month

The rent will then remain at Tk [step 2 amount] until at least [Month YYYY], subject to the terms of our agreement and applicable law.

Please let us know by [response date] whether this arrangement is acceptable.

Warm regards,

[Landlord's name], [Signature], [Phone]

Template 5: Short SMS or WhatsApp Notice

A message is not a substitute for a written letter, but it is a good courtesy before or after sending the formal notice.

"Assalamu Alaikum [Tenant's name]. This is [Landlord's name], owner of [flat/shop number]. As discussed, the rent will be Tk [new amount] from [Month YYYY] (currently Tk [current amount]). A formal letter is attached / will reach you by [date]. Please call me at [phone] if you want to discuss. Thank you."

For other ready-made messages, see our rent reminder message templates in English.

Template 6: Tenant Acknowledgement Slip

Attach this at the bottom of your letter so the tenant can sign and return it.

Acknowledgement

I, [Tenant's name], tenant of [flat/shop number, address], acknowledge receipt of the rent revision notice dated [date].

[ ] I accept the new rent of Tk [amount] effective from [date].

[ ] I would like to discuss the revision. Please contact me at [phone].

Signature: ____________ Date: ____________

Filled-In Example (Illustrative)

For example (illustrative): Here is how Template 1 looks with real-style details. Names and numbers are fictional.

Date: 1 February 2026

To: Mr Rahim Uddin, Flat 4B, House 12, Road 5, [Area], Dhaka

Subject: Notice of rent increase for Flat 4B

Dear Mr Rahim Uddin,

Thank you for being our tenant at Flat 4B since March 2024. We have appreciated your timely payments.

The monthly rent will be revised from Tk 20,000 to Tk 21,500, an increase of Tk 1,500 (7.5%), effective from 1 May 2026 (rent for May 2026 onwards). The service charge of Tk 2,500 and all other terms of our agreement dated 1 March 2024 remain unchanged.

Please contact me at [phone number] by 28 February 2026 if you would like to discuss. Kindly sign and return the attached acknowledgement.

Sincerely, [Landlord's name]

The arithmetic: new rent 21,500 minus current rent 20,000 = Tk 1,500. Percentage: 1,500 / 20,000 x 100 = 7.5%. Over 12 months, the tenant will pay an extra 1,500 x 12 = Tk 18,000 per year. Notice given on 1 February for an increase from 1 May = three months' notice.

How to Deliver the Letter

• By hand: hand it over personally and ask the tenant to sign a copy as received.
• By email or WhatsApp: send a PDF and keep the delivery record; follow up with a signed paper copy if possible.
• By post: registered post with acknowledgement provides proof of delivery, useful for commercial tenants or if a dispute is possible.

Whatever the method, keep a copy with the date of delivery.

Tips for a Smooth Rent Increase

• Talk first, write second: a short, respectful conversation before the letter avoids surprise.
• Be reasonable: a moderate, regular increase is easier to accept than a large, irregular one.
• Explain briefly: tenants understand rising costs when you are honest about them.
• Time it well: avoid sending the notice right before Eid or at the start of the school year, when family budgets are tight.
• Improve something: fixing a long-standing repair or painting the stairwell alongside the increase shows good faith.
• Update your records: make sure the next invoice uses the new rent from the correct month, not earlier.

Common Mistakes to Avoid

• Announcing the increase verbally only, then disagreeing later about the amount or date.
• Giving very short notice, such as a few days before the month begins.
• Applying the increase retroactively to months already passed.
• Threatening language such as "pay or leave".
• Increasing rent in a way or at a frequency that conflicts with the law or the agreement.
• Forgetting to mention whether the service charge also changes.
• Not keeping a signed copy of the notice.

What If the Tenant Does Not Agree?

Listen to their concerns. Sometimes a smaller increase, a phased increase, or a longer fixed period is a better outcome than a vacancy. Remember that an empty flat for two months can cost more than the whole year's increase. If you still cannot agree, and the agreement allows it, either side may end the tenancy with proper notice. In that case, use a clear written notice, such as our notice to vacate template in English, and follow the agreement and the law. Never cut utilities or pressure a tenant to leave.

Final Thoughts

A good rent increase letter is clear, polite, specific and well-timed. State the current rent, the new rent, the increase, the effective date and what stays the same, give reasonable notice, and invite discussion. These templates cover the most common situations for flats, shops and offices in Bangladesh; adapt them to your agreement and have a lawyer review anything unusual.

After the increase is agreed, the next step is making sure every invoice reflects it from the right month. In Bariwala ERP (বাড়িওয়ালা ERP), you update the tenant's rent once, and bulk monthly invoices, receipts and SMS reminders follow the new amount automatically, while past invoices keep the old rent for a clean history.