One of the most frustrating parts of being a tenant is never knowing when—and by how much—your landlord is going to raise your rent. The good news for tenants is that landlords can’t raise rents on a whim—your lease or rental agreement will dictate when your landlord can raise your rent. For those tenants living in buildings subject to rent control, rent control laws might also restrict when or by how much your landlord can increase your rent.
A lease is a binding contract in which a landlord agrees to rent property to a tenant. A lease should specify how long the tenant can remain in the property (the term of the lease) as well as how much the tenant will pay in rent. The majority of residential leases last for a year, and, in most situations, a landlord cannot increase the rent until the lease ends. Some leases, though, allow the landlord to raise the rent in the middle of a term for a reason, such as adding a roommate or bringing in a pet. Read your lease carefully to see if it lists any reasons your landlord can raise the rent. Most of the time, mid-term changes to a lease can occur only if the parties agree to the changes in a signed, written agreement that’s either separate from or incorporated into the lease.
Landlords can increase rent when it’s time to renew the lease. Usually, landlords who want the current tenants to remain in the rental will give them a new written lease to replace the expiring lease. The new lease, with a new rent amount, serves as written notice that the landlord is raising the rent. The tenants can sign the new lease or move out. If the tenants remain in the rental but do not sign the new lease, the landlord can either allow them to stay (which creates a month-to-month tenancy in most places) or begin eviction proceedings.
Rental agreements are less formal than leases. In fact, rental agreements don’t even have to be in writing (although it’s always a good practice to put a rental agreement in writing). Rental agreements are typically for shorter periods of time than leases, such as a month or biweekly. Because rental agreements are typically short term, though, they do not provide tenants with certainty about rent.
Rental agreements renew automatically when each term ends, and, unless the landlord gives proper notice of a change, all parts of the agreement remain the same. Landlords can raise the rent in a rental agreement only after giving proper notice. The notice required by state laws varies, but typically is at least 30 days for a month-to-month agreement. Some states require a longer notice period in certain circumstances, such as if the rent increase will be greater than 10 percent of the existing rent or if the tenant is a senior citizen. The rent increase cannot go into effect until the notice period has passed.
Rent control laws limit how much, how often, and under what circumstances a landlord can raise your rent. There is no nationwide rent control law—rent control laws are found at the state, county, and city levels.
Most rent control ordinances allow landlords to raise the rent when one tenant moves out and a new one moves in. The ordinance might limit how much the landlord can raise the rent based on certain criteria, such as the current inflation rate. Sometimes, landlords can petition for additional rent increases in order to make capital improvements or keep pace with operating and maintenance costs. Even if you live in an area with rent control, some buildings, such as new construction or single-family houses, might be exempt from rent regulations.
Regardless of whether you have a lease or a rental agreement, if you live in an area with rent control you’ll want to become familiar with the rent control regulations. If you believe your landlord has illegally raised your rent, consider filing a complaint with your local rent control housing board or authority.
Although landlords have many legitimate reasons for raising rent, some reasons for raising rent are never okay.
If you believe that your landlord raised your rent for discriminatory reasons or to retaliate against you, consider contacting a local attorney to examine your options.