Rent going up is just part of renting. Landlords often increase rent to cover costs like property taxes or higher mortgage rates.
But landlords can’t just raise your rent whenever they want. Giving proper notice is key, and they have to follow all the landlord-tenant laws when they send you a notice for rent increase.
Legal requirements for rent increase notices
Landlords can’t just raise the rent on a whim. There are legal requirements that govern when and how they can raise the rent.
Timing of notice
Your landlord has to give you sufficient notice before a rent increase goes into effect. Typically, this means you’ll get a written notice 30 to 60 days before your lease ends. In California, you’re entitled to 30 days’ notice if the increase is less than 10%, and 90 days’ notice if it’s more than 10%.
Generally, rent increases aren’t allowed during a fixed-term lease unless the lease agreement allows them.
Content of notice
A rent increase notice has to include specific information, such as the date of the notice, your name, the old rent amount, the new rent amount, and the date the increase takes effect.
If your lease includes a tax escalator clause, it needs to include a statement that tells you you’re obligated to pay a share of any tax increases, and it needs to specify the exact percentage you’re responsible for. It also needs to include a provision for what happens if taxes go down.
Reasons for rent increases and potential limits
Landlords sometimes need to raise the rent to cover costs like property taxes, rising mortgage rates, and general cost of living increases.
However, some cities and states place limits on how much landlords can increase rent:
- Some cities have rent control laws that limit rent increases.
- California law protects some tenants from rent increases that exceed 5% plus the Consumer Price Index (CPI).
- Rent increases are often capped at 10% in counties with a state of emergency.
Without these laws, rent increases will vary based on local conditions and market demand. Landlords often raise rent by 1-3% annually to keep good tenants.
What are your options?
When you get a notice that your rent is going up, you have a couple of choices. You can agree to the rent increase and renew your lease, or you can move out when your current lease expires.
You also have rights. In some places, an agreement to increase your rent is not valid unless you, the renter, get something extra in return. You might also consider organizing with your neighbors to fight unfair evictions.
If you think your rights have been violated, consider talking to a lawyer. There are also sample letters you can use to assert your rights.
Closing Thoughts
Whether you’re a landlord or a tenant, knowing the rules surrounding rent increase notices is essential. Landlords have to follow the law, and tenants need to be aware of their rights.
Good communication and a willingness to adhere to the legal requirements can help landlords and tenants maintain a positive, productive relationship.