Every rental property owner will have to raise rent at some point. While it can be uncomfortable to demand a higher rent payment from tenants, it’s often necessary for rental agreements to remain financially viable.
For landlords and property managers, as well as tenants, it’s important to know the laws surrounding rent increases. In most states, there are regulations on when landlords can increase rent, and in some cases, how much the increase can be.
While many states have more lax laws on rent increases, every state has some form of regulation that requires strict adherence. Navigating the complexities of rent increases can be a challenge, from variations in local rent control laws to advance notice requirements.
In this comprehensive guide, we’ll break down the intricacies of rent increase laws. You’ll find out what situations allow a landlord to increase rent and when it’s illegal. We’ll also take a look at how regulations vary by state and more specific scenarios, such as shorter lease periods and different types of properties.
TL;DR
Rent increases are a normal part of managing a rental property, helping landlords to keep up with inflation and the steady rise in operating costs. However, it is important to note that certain restrictions may limit how often landlords can raise rent. These laws include rent control, protected class, and anti-retaliation and anti-discrimination laws.
Landlords generally can’t raise rent during a lease term, except as provided by specific clauses in a lease or if the tenant and landlord agree on a mid-term increase. Most states also require advance notice of a rent increase, although the amount of time required varies by state and situation.
Increasing rent may seem daunting, but the process is usually simple.
What Does It Mean to Increase Rent?
A rent increase is exactly what it sounds like, and something most property managers will be familiar with. It’s when a landlord raises the payment amount they charge tenants each pay period. For most rental agreements, tenants pay rent monthly, and it’s usually due on the first day of the month. Other lease terms may arrange for weekly or biweekly rent payments.
When reviewing profit and loss statements, it’s a good time to assess which rental properties are making a good financial return. In most states, landlords don’t need to cite a reason to increase the rent. However, increases are usually for specific financial situations.
It’s a common misconception that landlords never need to raise rent if they have reliable tenants. The costs associated with owning a rental property often make rent increases necessary. Some of the reasons a landlord might increase rent include:
- Increase in market value for homes in the area
- Regular increases in operating costs like insurance and property taxes
- Upgrades to the property that raise its value
- Interest rate increases and inflation
Considerations to Keep in Mind When Raising Rent
After the decision to raise a tenant’s rent, property managers have several other factors to consider:
- Rent increase amount: While many states don’t have a limit on how much a landlord can increase rent, the amount should reflect fair market value as well as covering your operating costs.
- Giving notice: Most states require some amount of notice prior to a rent increase, usually 30 or 60 days. You should communicate the increase clearly through a written letter, including the increase amount and when the increase will take effect.
- Initiating increase: Ensure your payment system or rent payment app is up to date with the new rent payment amount on the date specified in your notice
When Can a Landlord Raise Rent?
How often a landlord can increase rent varies by state. In some states, rent increases can only take place at the time of lease renewals. In other states, landlords can legally increase rent as often as they choose.
Even in states with less strict regulations, there are caveats to rent increases. Colorado law, for example, prohibits rent control, but limits increases to once every twelve months. Rent increases must not be retaliatory, and all states forbid rent increases that are discriminatory against classes under federal protection.
Some states also limit how many times per year a landlord may raise the rent. All states require advance notice of rent increases, but the amount of notice required varies. At minimum, the landlord must give enough notice to constitute a “reasonable” amount of time (30 days minimum is typical, though not explicitly required in all states). Too little, or improper notice methods, could raise legal issues.
Giving Advance Notice of a Rent Increase
Local laws will dictate how and when notice of a rent increase should be delivered. All states require landlords to provide written notice in some form. Certified mail is usually the best option, both for covering your bases legally and ensuring your tenant receives the notice.
In addition to a written letter, you can notify your tenant via email. In the increasingly digital landscape of rental real estate, it’s smart to use both physical mail and email.
Be sure to provide notice within your area’s specific notice period requirements. Some states require as much as 90 days notice of rent increases. Notice requirements are generally more flexible for month-to-month leases.
Is there a Maximum Rent Increase Limit?
In most of the US, there is no set limit on how much a landlord can increase rent. Rent control laws are generally set by city governments.
Oregon and California are the only states with statewide rent control laws. In fact, over half of US states prohibit cities from enacting rent control laws. In areas with rent control, local regulations dictate the maximum rent increase percentage for protected properties.
Know Your Local Rexant Control Regulations
Beyond statewide law and federal regulations governing rent increases, be sure to research local rent control laws in your area, if there are any. These regulations may set limits on how often landlords can increase rent, and by how much. Different states also have different requirements for how much advance notice you have to give your tenant before a rent increase goes into effect.
Local Law: How Rent Increases Vary By State
Each state has its own regulations on rent increases, including how much the increase can be, when you can increase rent, and notice requirements.
Keep in mind that within each state, some cities or counties may have their own rent control laws that supersede these general rules. Specific situations like unique property types or atypical lease terms may also have different rent increase laws.
In all states, it is illegal to raise rent in retaliation for a tenant exercising legal rights, like joining a tenant union or submitting a grievance. Raising the rent during a lease term is also generally illegal unless the lease forms have a clause specifying otherwise.
Here’s a quick rundown of general rent increase laws by state:
Alabama
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Alaska
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days for month-to-month tenants, 14 days for weekly rent payments
Arizona
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days for month-to-month tenants, 14 days for weekly rent payments
Arkansas
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days for month-to-month tenants, 14 days for weekly rent payments
California
- Rent control: Statewide rent control, plus local rent control laws
- Rent increase amount limit: 5% + inflation, or 10% per year, whichever is lower, per the Tenant Protection Act
- How often landlords can increase rent: No more than twice per twelve months
- Rent increase notice requirements: 30 days minimum, 90 days if increase is more than 10%
Colorado
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: Once per year
- Rent increase notice requirements: 60 days for mobile homes or in the absence of a written lease agreement, 30 days otherwise
Connecticut
- Rent control: No statewide rent control, but local fair rent commissions that prohibit excessive rent increases
- Rent increase amount limit: No limit, except as dictated by local fair rent commission
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 45 days, except for month-to-month or shorter lease terms
Delaware
- Rent control: No statewide rent control, but city rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: 60 days minimum, 90 days for mobile homes
Florida
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Georgia
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 60 days for expiring leases, 30 days considered reasonable otherwise
Hawaii
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 45 days for month-to-month leases, 14 days for weekly rent payments, 30 days considered reasonable otherwise
Idaho
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: Once per six months for mobile homes, no limit otherwise
- Rent increase notice requirements: 30 days, 90 days for mobile homes
Illinois
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Indiana
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days minimum
Iowa
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days minimum
Kansas
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days, 60 days for mobile homes
Kentucky
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Louisiana
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Maine
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: 45 days, 30 days for mobile homes
Maryland
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Massachusetts
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days in most cases, or the rent payment frequency (e.g. 60 days for bimonthly rent payments)
Michigan
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit, except a ban on rent payments that are substantially higher than that of comparable homes
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Minnesota
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control, twice per year for mobile homes
- Rent increase notice requirements: Equal to rent payment frequency up to 90 days, 60 days for mobile homes
Mississippi
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days for month-to-month leases, 7 days for weekly rent payments
Missouri
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 60 days for mobile homes, 30 days considered reasonable otherwise
Montana
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 15 days minimum
Nebraska
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days for month-to-month leases, 7 days for weekly rent payments, 60 days for mobile homes
Nevada
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 60 days for month-to-month leases, 30 days for weekly rent payments, 30 days considered reasonable otherwise
New Hampshire
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days minimum, 60 days for mobile homes
New Jersey
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: 30 days minimum
New Mexico
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days for month-to-month and fixed-term leases, 7 days for weekly rent payments
New York
- Rent control: 3% maximum increase on mobile homes in most cases, maximum annual rent increases set yearly for rental units protected by rent control/stabilization laws
- Rent increase amount limit: Set by local Rent Guidelines Board for rent-controlled units, no limit otherwise
- How often landlords can increase rent: Once per lease term in most cases, depending on local rent stabilization laws
- Rent increase notice requirements: 30, 60, or 90 days, depending on length of lease
North Carolina
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
North Dakota
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days minimum
Ohio
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Oklahoma
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Oregon
- Rent control: Statewide rent control, local rent control prohibited
- Rent increase amount limit: 7% plus consumer price index
- How often landlords can increase rent: No increases during initial lease year, then once per year
- Rent increase notice requirements: 90 days, 7 days for week-to-week leases
Pennsylvania
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Rhode Island
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: 60 days, 120 days for 63+ year-old tenants on month-to-month tenancies
South Carolina
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
South Dakota
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 30 days minimum
Tennessee
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Texas
- Rent control: Prohibited statewide, except in an official housing emergency
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Utah
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified for expiring leases, 15 days for periodic leases, 5 days for at-will tenancies
Vermont
- Rent control: No statewide rent control, but local rent control permitted (however, no cities have enacted rent control laws)
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: 60 days minimum
Virginia
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Washington
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: 60 days minimum
Washington, D.C.
- Rent control: Districtwide rent control on some units
- Rent increase amount limit: Set by the Office of the Tenant Advocate
- How often landlords can increase rent: Once per year in most cases, only if the increase complies with local regulations
- Rent increase notice requirements: 60 days minimum
West Virginia
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Wisconsin
- Rent control: Prohibited statewide
- Rent increase amount limit: No limit
- How often landlords can increase rent: No limit
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
Wyoming
- Rent control: No statewide rent control, but local rent control permitted
- Rent increase amount limit: No limit, except in cities with rent control
- How often landlords can increase rent: No limit, except in cities with rent control
- Rent increase notice requirements: No notice period specified, 30 days considered reasonable
When to Seek Legal Aid for a Rent Increase
As long as your rent increase is in line with the going real estate prices in your area and you comply with any local regulations, rent increases are usually a relatively frictionless process. However, there are some situations where you may need to seek legal aid for your rent increase:
- Tenant alleges discrimination: All states prohibit discriminatory or retaliatory rent increases for protected classes, so be sure your rent increase is reasonable and can’t be construed as discriminatory.
- Unclear language in lease agreement: If your lease doesn’t specify a notice period or changes in the rental situation like a roommate moving in, you may need legal counsel to ensure your rent increase is legal.
- The tenant has recently filed a complaint or joined a union: Many states prohibit increasing rent in retaliation for renters exercising legal rights, and some even limit rent increases within a certain time frame of protected actions by tenants.
How Does a Rent Increase Work for Month-to-Month Leases?
For one-year leases, rent increases are generally allowed once per lease term, and can be any reasonable amount. Month-to-month leases, however, often have specific regulations on aspects of the rent increase like advanced notice requirements. Otherwise, regulations are generally more flexible for month-to-month leases, since they are a more flexible renting arrangement than a fixed term.
Rent Increase Laws for Subsidized Housing
Subsidized housing usually has limits on how much landlords can increase rent. Factors that determine rent increase limits for subsidized and rent stabilized housing include:
- Properties eligible for Low-Income Housing Tax Credit
- Public Housing Agency approvals
- Advance notice requirements
- Local rental prices on other subsidized units
Rent Increase Laws for Mobile Home Parks
Rent increases for mobile homes operate similarly to other rental homes in most respects. However, most states require additional advance notice of rent increases for mobile homes. Some states, like New York, also have rent increase caps specifically for mobile homes.
In addition to the unit itself, mobile home parks also have “lot rent,” which is the rental charge for the plot of land. In some cases, renters may own their own mobile home, but rent the lot, or vice versa.
What If Your Tenant Joins a Tenants Union?
A tenants union is a group formed by tenants who share a landlord, community, or region. These groups advocate for the legal rights of renters and often negotiate on behalf of all the members as a whole rather than individuals. Unions often negotiate with landlords or property managers to address maintenance issues, eviction protections, and rent increase limits.
While it may be concerning for landlords if their tenant joins a union, it’s important not to raise rent or decrease services in retaliation. Joining a tenants union is a legal right, and all states prohibit rent increases in response to unionizing.
In fact, for landlords who manage a large number of properties, tenants unions can sometimes streamline operations. Rather than coming to the landlord with complaints or maintenance requests, unionized tenants bring these issues to their union rep, who then communicates with property management. This arrangement can keep issues from escalating to the health department or other city offices.
When Should You Not Raise Rent?
Between maintenance, property management fees, renovations, property taxes, and insurance, landlords have many operating and utility costs to cover. Raising rent may feel like the only option to keep an investment property profitable, and in many cases it is.
On the other hand, there are several situations where it may be advantageous not to raise rent:
- Keeping a reliable tenant: If you have a tenant that pays on time and rarely causes issues, keeping the rent a little lower can be worth avoiding the hassle of finding a new occupant.
- Rent concession: If you’re having trouble filling a property, offering a lower rent payment or a month’s free rent can make listings more competitive and attract renters.
- Buyer’s markets: If your rent is already in line with other units in the area, raising the rent can push a good tenant to move out.
- Too close to lease renewal: Never raise rent without enough time to provide a reasonable amount of advance notice.
- Avoiding legal challenges: Raising rent shortly after a tenant makes a complaint or joins a union, or if the tenant is of a federally protected class, can open you up to legal issues.
Simplify Your Property Management with TenantCloud
Rent increases can be uncomfortable, but they’re a necessary part of managing a rental property. The key is to know what your state law and city regulations say about rent increases. As long as you comply with rent increase limits in your areas and give the appropriate amount of notice to your tenant, the process should be straightforward.
Between listing properties, screening tenants, rent collection, and maintenance, landlords have plenty to think about, not to mention filing taxes. TenantCloud is an all-in-one property management tool that can save landlords and property managers as much as 20 hours a week. Get started today with a 14-day trial to find out why TenantCloud is trusted by over 1 million users.
FAQs
How much notice do I have to give for a rent increase?
At least 30 days’ notice is considered reasonable, but some states require more notice, at least in specific situations.
What states have rent control?
California and Oregon have statewide rent control, while Maine, Maryland, Minnesota, New Jersey, and New York have rent control in certain areas. Other states either have no cities with rent control or ban cities from having their own rent control ordinances altogether.
How often can landlords raise rent?
Most states don’t have a limit on how often landlords can raise rent. However, it is generally illegal to raise rent during the current lease term, so no more than once a year is fairly typical, especially for a year-long lease.
What is the maximum amount a landlord can increase rent?
Except in areas with rent control, there is no legal limit to the amount a landlord can raise rent. It’s best to avoid raising rent above the average for similar properties in your area to avoid costly tenant turnover.
What are common reasons to raise rent?
Common reasons landlords cite for raising rent include:
- Inflation and increases in property taxes
- Renovations and other property improvements
- Increase in real estate prices in the area
- Increased housing demand
- Community renewal projects
Can a landlord raise rent twice in one year?
Most lease terms operate in one-year periods. Since raising rent during a lease term is prohibited in most situations, landlords generally can’t raise rent twice in one year. However, there are some exceptions. Landlords may raise rent more than once in a year if:
- The lease agreement has a clause allowing for mid-term rent increases
- The lease term is shorter than one year (e.g. month-to-month leases)
- The tenant agrees to an additional rent increase within a year as compensation for a property upgrade
