Can a Landlord Raise the Rent? Yes, and Here’s How to Do It

Over 36% of people in this country rent the places they live, while the remaining people own homes. This figure is excellent news for landlords, as it means they won’t have trouble finding tenants.

Landlords have duties to their tenants, though. They have to care for their properties and handle disputes when they arise. Landlords also have the responsibility of collecting rent and setting rental rates.

As you view your properties, you might feel like you don’t charge enough for the rent. But, you might wonder, “can a landlord raise the rent?”

Yes, landlords can raise the rent, but they must follow the correct procedures. Here is a guide to help you learn the proper ways to increase the rent with your rental properties.

Determine if Raising the Rent Is Appropriate

If you’re wondering if you can raise rental prices with your properties, you may want to begin by determining if this is appropriate. In other words, why do you want to increase the rent?

Some landlords do so to increase their cash flow, and you can view this site to learn more ways to achieve this goal. Other landlords raise rent due to rising inflation.

In any case, it’s vital to determine your reason for increasing the prices. Secondly, it’s crucial to decide if you have a good reason for it. Finally, it’s helpful to explain this to your tenants, as they will want to know.

Decide When to Raise the Rent

The next thing to consider is your timing for raising the rent prices. Should you do this now, a month from now, or later? Additionally, you may want to consider if you should wait until the end of their lease.

You may have an easier time raising the rent if you wait until a tenant’s lease ends before raising the costs. In this case, you can let the tenant know in advance about the increase, giving them time to look into other rentals.

If you don’t want to wait until the end of their leases, you could do it sooner. You’ll need to follow your state’s laws regarding the timeframe for notifying your tenants.

Create a Schedule for the Rental Increase Amount

Next, you might want to research, “how much can landlords raise the rent?” Is there a limit you must follow? Are there rules about the amount you can raise a person’s rent?

A landlord is free to raise rental costs as desired. However, landlords shouldn’t increase the rates too much, as this might cause all the tenants to move out.

Instead, you should consider the going rates of rental properties in your area. Then, you can use the going rates as a basis for your rental increases.

Next, you might want to make a schedule for these increases. For example, you could raise the rent by 3% this year and another 3% next year.

Check With Your Attorney

It’s also wise to seek legal advice from your attorney before changing the rent. When meeting with your lawyer, you can ask questions, like, “as a landlord, when can I raise the rent?”

There are several legalities to consider before raising the rent.

The first is the timing of when you do it. Some states don’t allow you to raise the rent during an active lease, while others do. If your state allows changes during an active lease, your lease might have to state this fact.

The second legality to consider is the amount of time you must give your tenants before the increase takes effect. For example, you might need 30 days in some states, while others might require 90 days.

Write a Letter to Send to Your Tenants

When you decide to raise the rent, you can write a letter to send to your tenants. This letter notifies them of several things:

The Purpose of the Letter

The letter should state the purpose of notifying your tenants that you’re increasing the rent prices. You can write this at the beginning of the letter.

The Reason for Raising the Rent

Secondly, you should include the reasons you’re raising the rent. Then, you can list one or more reasons.

The New Rental Amount

Finally, you should inform your tenants about the new rental amount. If you charge different rates for your properties, you’ll need to change this amount on your letters to accommodate all your tenants.

Notify Your Tenants

Once you finish the letter and are ready to notify your tenants, you can send a letter to each one. Sending them through certified mail is the best way to do this, as you can ensure they receive it.

Make sure you keep the notification timeframe in mind. For example, if you need to offer 30 days’ notice, send them at least 30 days before the rent increase.

Update Your Lease

Finally, you might want to update your lease when increasing your rent. The first reason to do this is to adjust the wording on the lease, so it clearly states your current rates for the units. check here.

Secondly, you should add a clause in your lease that allows you to change the rent prices when you deem fit. If you add this clause, you’ll have the legal right to change the rates according to your state’s guidelines.

Can a Landlord Raise the Rent? Yes, You Can!

Can a landlord raise the rent? As you can see, the answer is yes. You have the right to increase the rent when you decide to, but you must follow the correct steps.

You may also want to consider the effects of raising the rent before going through with it, as it might cause some tenants to move.

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