Rent Increase Notice Letter

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A rent increase notice informs a tenant about an upcoming rise in the amount of rent. Landlords in most states can’t increase rent at will, so state or local laws often specify a certain amount of advance notice to the tenant before a rent increase takes effect.

When Can Landlords Increase the Rent?

Landlords often have to follow specific requirements in order to increase the rent. In addition to any legal restrictions on frequency, they generally must wait until the renewal of a rental term.

Increasing Rent During a Fixed-Term Lease

Landlords usually can’t increase rent during fixed-term leases, even when the tenant has agreed to provisions that allow it. For example, a one-year lease usually has the rental amount locked in until the end of that year, with any increase taking place upon lease renewal. It’s sometimes possible for a fixed-term lease to have specific terms which allow a rent increase, but this is a legal risk. Courts often see a fixed and predictable rental price as one of the fundamental purposes of a fixed-term rental. Terms that allow a rent increase may be unenforceable and risk the validity of the entire lease.

Increasing Rent When Renewing a Fixed-Term Lease

Landlords usually can increase rent when a tenant is renewing a fixed-term lease. Most courts interpret a lease renewal as a new contract with similar terms to the old contract. This means a landlord can update the lease provisions from one fixed term to the next, and make the lease renewal dependent on the tenant agreeing to any new terms, including rent.

Increasing Rent When Renewing a Month-to-Month Lease

Landlords usually can increase rent from one month to another on a month-to-month lease. Most states require at least one full rental period of advance notice for month-to-month tenants, often specified as 30 days or more.

Suppose it’s in February, and the landlord wants to increase the rent on a month-to-month tenancy. In most states, the landlord would not be allowed to increase the rent for the March rental period. The earliest a rent increase could apply would be to the April rental period.

Illegal Rent Increases