How Much Can a Landlord Raise Rent + 6 Rent Increase Tips

You’ve found the apartment of your dreams, and better yet, it’s affordable! But, though you’re excited, you can’t help but wonder — will it always be this affordable? Just how much can a landlord raise the rent in the future?

This guide will give you all the answers you’ve been looking for. Here’s everything you need to know about landlords raising rent and how to handle a rental increase notice like a pro.

How Often Can a Landlord Raise Rent?

Rental increase laws mean landlords can only legally raise the rent when your current lease agreement expires.

A lease agreement is a binding legal document. The terms within it can only be changed if you and your landlord agree to sign a new lease agreement.

That said, if you currently have a month-to-month lease agreement, then rent can’t be raised until the end of the month when your lease agreement expires. For this reason, most tenants prefer a long-term lease term so they only experience one rent increase per year.

How Much Notice is Required Before Raising Rent?

According to rent increase laws, a landlord must provide tenants with a notice of rent increase. In most states, a landlord must give tenants notice at least 30 days before they’ll enforce a rent increase agreement. However, in other states like California, the rental increase letter can increase to 60 days’ notice if the landlord raises the rent by more than 10% of the current rent rate.

In short, having a thorough understanding of your local and state laws regarding legal rental increases is vital. It can help improve your preparedness and ensure a fair rent increase.

If you fall in the category of being a “tenant at will,” meaning you don’t have a written lease agreement, the law still protects you against sudden increasing rent. Landlords will still be required to give you the minimum notice before they raise the rent.

How Much Can a Landlord Legally Raise Your Rent?

There is no real limit to the amount that landlords can legally raise their rent prices. In theory, landlords can double, triple, and even quadruple their rental rates without an official law. However, you’re unlikely to experience this kind of increase, as landlords have to stay competitive with the other rental units in their area, and increased rent prices have exponentially reduced the pool of tenants that could afford to pay sky-high prices.

While landlords are generally allowed to raise rent, they cannot do so for punishment or in retaliation. That’s referred to as a punitive rent increase. For example, if you raise complaints to your landlord about the apartment's condition and see landlords increasing rent in retaliation to your complaints, you would have legal grounds for a civil suit.

On the other hand, if you reside in a rent-controlled or rent-stabilized apartment unit, local laws cap the amount landlords can charge for rent. These laws exist to protect the amount of affordable housing available to residents. Read more about when landlords can raise the rent.

Can a Landlord Raise Rent Retroactively?

It is illegal for a landlord to raise rent retroactively.

As we stated earlier, in most states, landlords must provide tenants with a minimum of 30 days' notice before increasing rent.

However, if your landlord gave you proper notice of the increase and didn’t comply with it, you’re still responsible for paying the balance.

A retroactive rent increase may be an attempt to overwhelm tenants with overdue back rent costs. If you believe this is the case, you can file a civil case against your landlord.

What to Do with a Rental Increase Notice?

Once you receive a rent increase letter from your landlord, you might be unsure of your next move. Therefore, handling the situation carefully is important, especially if you want to negotiate the rent increase with your landlord.

Here’s what you need to do if you receive a rent increase letter:

• Ensure the Increase is Legal: Start by checking your local landlord-tenant laws. As they vary by locality, you’ll need to do some research to verify the increase’s legality.
• Review Your Lease Agreement: Your lease agreement is legally binding for both you and your landlord. Review your agreement to ensure that your landlord fulfilled all of the legal requirements before raising the rent. Have they given you proper notice? Stayed within the rent rate limit?
• Talk to Your Fellow Tenants: Discuss the rent raise with other tenants if applicable. You may be able to negotiate the terms of the rent raise as a collective with your landlord.
• Talk to Your Landlord: It might be best to discuss the possibility of negotiating the rent raise with your landlord directly.

6 Tips to Avoid Rental Increases

Rental increases are often a result of a hot market and inflation. Unfortunately, it may seem nearly impossible to avoid them, but if you are proactive in the attempt, you may be able to avoid rent increases.

Here are six tips to help avoid rental increases:

1. Make Your Landlord Want to Keep You Around: If you keep your head down and avoid any issues as a tenant, you might incentivize your landlord to keep you as a tenant.

2. Ask Your Landlord Longer Lease Options: Being a long-term tenant can make some landlords less inclined to raise your rent because you represent a steady income stream and may be considered a low-risk tenant.

3. Don’t Get Any New Pets: Getting a pet may result in a raised rent in the form of pet rent, or your landlord may be less inclined to continue renting at a reduced rate when you have a pet.

4. Skip the Upgrades for Now: To recoup the financial losses incurred by making upgrades or repairs on a property, landlords may turn to tenants as the source of funding and increase rent.

5. Be Strategic About Where You Choose to Live: Choose a city with laws that help protect renters from excessive rent hikes by limiting the amount that rent can increase by and/or requiring sufficient notice.

6. Make an Impact Amongst Your Neighbors: If you and your fellow tenants present a united front against a rent increase, you may be able to negotiate rent at a reduced rate or hold it off for another year.

Final Thoughts

Rent increases can be challenging to handle whether you’re a landlord or a tenant, which is why the knowledge above is so important. With this knowledge, you’ll be able to make an informed decision.