Rent Increase Notice: Learn Everything About A Fair Rent Increase Notice 

You can be an expert with your writing skills; however, putting together a rent increase notice may be challenging for anyone.

Let’s be honest here, none of the tenants ever really want to see a rent increase notice, but it’s inevitable. As the landlord or landlady, you will also have to cater to your own needs, like keeping up with your mortgage payments or even coping with the cost of living in your area.

And for that purpose, increasing the rent is important.

Hence, while writing a rent increase notice, you would want to ensure that you are in compliance with the concerned state or local landlord-tenant laws that are related to raising the rent.

You would also want to make sure that you are giving your tenants sufficient notice of the increase in the rent so that they get enough time to decide if they want to renew the leash or move out.

While the number may vary from one state to the other, the landlords are generally required to inform the tenants about a rent increase at least 30 to 60 days prior to the ending of their lease.

Let us now go through some of the aspects that every landlord needs to keep in mind while writing a rent increase notice.

As a tenant also, you would want to consider these aspects so that you have the primary understanding if your landlord is being fair with you or not.

Reasons For A Rent Increase Notice

There is no concrete reason as to why a landlord would want to raise the rent. It varies from one landlord to another; however, some of the generic reasons as to why a landlord would want to raise are listed below:

• An increase in property taxes.
• Higher mortgage rates.
• An increased cost of living.
• An increase in rent is embedded in the lease.
• To make sure that the cost of property maintenance is covered.

Limit For A Rent Increase Notice

Unless the rent controls the property, there is apparently no limit to how much the landlord may raise the rent.

However, there are legal rules that govern when and how landlords may raise the rent.

For instance, all landlords must provide 30 to 60 days before increasing the rent, and the increase

must not be revenge against a tenant.

Generally, the increases in rent are 1-3% year-over-year to keep in touch with the market; while refraining from drastically increasing the rent, which might just scare away the tenants.

When May A Landlord Raise Rent During Periodic Tenancies?

This is totally based on the type of tenancy that the landlord and the tenant have agreed upon.

In the case of periodic tenancies that roll on a month-by-month or week-by-week basis, a landlord canno raise the rent more than once in a year without fetching the agreement of the tenant first.

When May A Landlord Raise Rent During Fixed-Term Tenancies?

In the case of a fixed-term tenancy, which is a signed agreement for a time period, like six months or so on, the landlord may only be able to raise the rent if the tenant agrees to it.

Upon disapproval, the landlord may only raise the rent after the fixed term expires.

Adding A Review Clause To A Tenancy Contract

A landlord may add a rent review clause in the contract of tenancy. This clause will state:

• When the increase is about to take place.
• The notice amount will be provided to the tenant.
• A system or formula by which the increase in rent will be calculated. This will provide a complete calculator as to how much the rent is to increase.

What Is A Section 13 Notice?

If the tenancy agreement does not include a rent review clause or has expired, and yet the landlord wants to raise the rent, he may use a Section 13 notice.

A landlord can use the Section 13 process only once a year. The tenants must have minimum of a month’s notice of the proposed raise for monthly or weekly rental agreements.

If the agreement is set for more than a month, the tenant is then entitled to more notice [6 months usually].

Even though the landlord can provide the notice during the fixed tenancy period, the increase will not be put into effect until after the end of the fixed term. If the tenancy did not have a fixed term, to begin with, Section 13 will not be at all used during the first year of the tenancy.

How Do Landlords Propose A Rent Increase Notice?

If the landlord wants to propose a rent increase notice, he may:

• Renew the agreement of tenancy at the end of the fixed period, mentioning an increase in the rent.
• Agree on an increase in rent with the tenant. There must be a tangible record of the agreement that both the parties signed.
• Try to use a form known as the “Landlord’s notice proposing a new rent,” which raises the rent after the end of the fixed term.

Can A Tenant Refuse A Rent Increase Notice?

A tenant can, in fact, refuse a rent increase notice and appeal to a court to challenge Section 13 rent increase.

A tenant will still have to pay the existing rent until a decision made.

If the tenant and a landlord fail to reach an agreement, the tenant has all the liberty to move on.

Frequently Asked Questions (FAQs):

The Bottom Line

This was everything that you needed to know about a fair increase in rent and the key points that you need to keep in mind while curating a rent increase notice. You must consult a professional before taking any concrete step so that none of the parties ever get into legal trouble for breaching the legal agreement.

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