Once you’ve settled into your apartment and adjusted to paying your monthly expenses, keep in mind that your costs might change when your lease is up. That’s because most landlords will give you a rent increase when it’s time to renew your agreement. When and by how much your landlord raises your rent depends on the type of lease agreement you signed, where you live, the local rental market conditions, and whether you are in a building that has rent control. Here’s what you need to know.
What is a rent increase?
When you agreed to the terms of the lease, your monthly rent was set for the length of your agreement — usually one or two years. But once your lease comes up for renewal, your landlord will likely increase your rent. The timing of a rent increase and how your landlord notifies you about it can vary according to state law.
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Why do landlords increase the rent?
Because fixed property expenses including insurance premiums, taxes, maintenance and utilities are going up, rental increases are a common way for property managers to run a profitable business. This is especially true in a hot rental market, where there are few vacancies and many potential tenants.
Often, if you’re a good tenant, a landlord will try to keep you by not raising your rent, or by increasing it slightly. However, if there are many rising building expenses — such as needing a new roof or replacing windows — you’ll likely see an increase in your rent.
How much can a landlord raise the rent?
Property managers usually raise the rent according to the rate of inflation. The amount a landlord can hike the rent depends on where you live, but the average rent increase ranges between 2 percent and 4 percent across the U.S.
If you live in a city or a building with rent control, your landlord has restrictions on how much they can raise the rent. The five states that saw the highest average rent increases from 2021 to 2022 are Florida, Tennessee, South Dakota, New York and North Carolina. The lowest increases were in Minnesota, Idaho, North Dakota, Hawaii and Iowa.
How often can a landlord increase your rent?
Legally, landlords aren’t allowed to hike up your rent whenever they want. They must wait until your lease expires. However, if you’re renting month-to-month, your property manager can increase the rent at the end of any given month.
Landlords are not permitted to give you a rent increase if:
- You’re in the middle of your lease agreement
- Your lease does not allow a rent increase
- Advance rent increase notice was not properly given
- The property is rent controlled
- The increase is being given as retaliation against you
- The increase is considered discrimination against a tenant according to the Fair Housing Act
- The landlord is trying to force you to move out
How does a landlord tell you about a rent increase?
Your property manager must inform you in writing of any changes in rent, so you will receive a rent increase notice. Usually, you’ll receive it as part of your lease renewal letter at least 30 days before your agreement expires. A rent increase notice will clearly state when the new rent takes effect. It may also explain how the rate is competitive in your local market. And it can also give you a deadline to respond to the letter, stating whether you intend to renew your lease.
If your landlord does not respect the timeframe detailed in your lease agreement with regard to when and how much to raise your rent, you can contest the rent increase. Consider consulting a tenant’s lawyer to find out your options.
Can you avoid a rent increase?
You can try negotiating your rent increase notice with your property manager. Be sure to do so in writing. You might offer to sign a longer lease in exchange for keeping your original monthly rent. Sometimes, a landlord would prefer to keep a good tenant in the building who pays on time and respects the terms of the lease. Otherwise, they’re faced with a gamble to find a reliable tenant if you refuse the proposed rent increase and then move out.
If negotiating with your landlord doesn’t work, you can decide to accept the new rent, get a roommate to split the costs or move out and hope to find a more reasonable apartment elsewhere.
To learn more common renter terms, visit our Renter Dictionary.
