What to know about rent increases

Rent increases are becoming more common, especially with median rental prices throughout the country on the rise again. As a renter, you’re entitled to basic tenant rights, but your landlord also has rights of their own. So, how do you know if your landlord is legally allowed to raise your rent? If they are, is there a limit to how much they can raise it? Read on and see how to navigate rent increase notices.

Understanding rent increase notices

A rent increase notice is a written notice given by a landlord to a renter informing them of an upcoming rent increase. The notice must comply with state and local laws, and it must be delivered in writing to the renter within a specific timeframe before the increase takes effect.

Can my landlord raise my rent legally?

In short, yes, it’s within your landlord’s right to legally raise your rent. However, there are a few stipulations surrounding rent increases, and they can vary by state. Here’s the bottom line:

  • Unless otherwise stated in your lease agreement, your landlord cannot raise your rent before your lease is up. So, if you have signed a year-long lease, your landlord is only allowed to increase your rent once that 12-month period is up
  • On the other hand, if you only have a month-to-month lease, your landlord is allowed to increase it every month, given that they provide you ample notice (usually 30 days).
  • If you’re wondering, “how much can a landlord increase my rent?”, you might not like this answer. In many states, there is no maximum amount for rent increases. This means that, unless you are in a rent-controlled city or building, your landlord can raise the rent by as much as they want per year or month, depending on your lease duration. Check your local laws to see if there is a set amount or maximum.
  • Most states require your landlord to serve you the rent increase notice in writing. If it is given verbally, make sure to look up your specific state’s law to see if that is the legal way to receive notice.
  • The rent increase must not be done in a discriminatory or retaliatory manner. For example, if you’ve complained about habitability conditions in your unit to an outside organization, your landlord cannot retaliate by raising your rent.

State and local laws

State and local laws govern the rules surrounding rent increases. These laws vary depending on the state and city in which the rental property is located. In some states, landlords must provide a written notice to tenants at least 30 days before the rent increase takes effect. In other states, the notice period may be longer or shorter. It’s important to familiarize yourself with the laws in your state to ensure that you’re complying with the law.

In addition, landlords cannot discriminate against tenants based on their race, religion, gender, or other protected characteristics. They also cannot retaliate against tenants for exercising their legal rights, such as filing a complaint about unsafe living conditions or requesting repairs.

Notice requirements for rent increases

As mentioned above, notice requirements vary depending on the state and city in which the rental property is located. However, some general guidelines include:

  • Provide written notice to tenants at least 30 days before the rent increase takes effect.
  • The notice must include the amount of the rent increase and the date on which it will take effect.
  • The notice must comply with state and local laws.

It’s important to note that failure to comply with notice requirements can result in legal consequences, including fines and even eviction.

What to do when you receive a rent increase notice

If you’ve received a rent increase notice and you don’t want to move out, follow these steps.

  1. Confirm that the rent increase is legal

    Check your local tenancy laws, as they vary by city and state, and make sure the rent increase is legal where you live. Also, check that the rent increase amount is legal. For example, if your state laws say your rent can only be increased by 2% every year, a 5% rent increase would be illegal. 

  2. Make sure you have the notice in writing

    As previously mentioned, most states require that your landlord serve you the rent increase in writing. Whether you receive an email or a written document, be sure to save the letter for your records. If the increase is only communicated to you verbally, that may be grounds for an unlawful increase.

  3. Refer to your signed lease agreement

    Read your lease and make sure your landlord has followed all legal obligations before increasing your rent. Was the rent increase letter given to you mid-lease? Are you in a rent-controlled unit? Understanding what you agreed to at the time of signing will help you navigate your next steps should this situation arise.

  4. Get the word out

    Assuming it’s a legal rent hike, talk to other tenants in your apartment building to see if you can collectively speak to your landlord about the increase. The greater the number of residents who are against the rent increase, the better chance you have of getting your landlord to reconsider. There may be other tenants in your same predicament who are eager to join efforts.

  5. Do some research

    You may have more negotiating power with your landlord if you can prove that the increase is inconsistent with other units in the area or even in your building. Take a look at recent listings and see if you can find something comparable to your current unit in terms of size and the amenities offered, posted with a similar or lower monthly rent. Compile this information use it for support as you discuss the situation with your landlord.

  6. Communicate with your landlord

    Speak to your landlord individually and ask if there’s any way to negotiate the rent. Suggest paying a few months’ rent ahead of time, or sign on for a longer, extended lease. There’s a chance your landlord might decrease the rent hike if they know you’ll be a guaranteed tenant for longer or are willing to pay more upfront. This is when having all of your information compiled will come in handy. Nervous to ask? Use this template and send your landlord a rent negotiation letter.

  7. Report any unlawful acts to the proper authorities

    If after checking your local tenancy laws and referring to your signed lease you have come to the conclusion that your state rental legislation has been violated, report the wrongdoing. Keep documentation of all communications with your landlord or property management should you need evidence to back your claims. There are often renter advocacy groups or local government agencies that work with these cases, and can help you navigate any next steps. As with all legal action pursuits you should always seek the advice of a professional before taking this course.

Next steps

If none of the above is successful, you will ultimately have to pay the rent increase. If you don’t pay the new amount by its due date, you may be served an eviction notice. In this case, your landlord will have something called “just cause” for eviction. Avoid an eviction by paying your new, increased rent or choose to move out before the increase takes effect. If you need to break your lease, make sure to follow these steps and do it the right way.

Frequently asked questions about rent increases

Here are some additional FAQs to help you fully understand rent increases:

Is my landlord required to notify me of a rent increase?

Yes. Your landlord is required to provide you with written notice of any rent increases. This notice will likely come with your lease renewal within 30-60 days from the end of your lease term.

Is there a limit to how much my landlord can raise my rent?

This will depend on your state and local laws. For example, in California a landlord is not legally allowed to raise your rent more than 5% plus an inflationary figure up to 10%. However, some areas do not have a cap on rent increases, so it’s important to check your local and state laws when you receive a rent increase notice.

What should I do if I cannot afford my rent increase?

If you cannot afford your rent increase you have a few options. The first thing to do is to try and negotiate the rent increase with your landlord or property manager. If you are a reliable tenant who always pays rent on time they may be more willing to come down on the price. However, be prepared that they may not be willing to negotiate, and in this case you may have to look for more affordable housing elsewhere.

Can a landlord raise rent during a lease?

Unless otherwise stated in your lease agreement, a landlord cannot raise your rent in the middle of your lease term. The lease agreement serves as a binding contract that both parties need to adhere to. If a landlord is going to raise your rent they will have to wait until the end of your current lease period.

How much notice must a landlord give before raising rent?

The amount of notice required by law varies by state, but generally, a landlord must give a tenant 30-60 days’ notice before increasing the rent. However, it is essential to check the local laws and the lease agreement to ensure compliance.

Can I negotiate a rent increase?

Yes, a tenant can negotiate a rent increase. It is essential to research the market rate for similar properties in the area and provide evidence to the landlord. A tenant can also request upgrades or repairs to the property in exchange for the rent increase.

How often can a landlord increase rent?

The frequency of rent increases varies by state and lease agreement. In most states, landlords can increase rent once a year or at the end of the lease term.

Rent increase letters are certainly not fun to receive, but your landlord is allowed to give you one as long as they follow all the local and state laws. If they aren’t following the law, you should go directly to your local housing advocacy organization and file a complaint.

Make sure you’re well-versed on what a landlord is allowed to do so you’re aware once you sign your next apartment lease.

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