Rental payment may increase due to reasons like renovations, maintenance, increase in expenses or even market demand. The increase in payment may occur most likely monthly or annually depending on the circumstances faced by the landlords. If you are a tenant, knowing your rights is essential. This article will tackle about how often can a landlord raise the rent and the process of doing so.
What factors can a landlord consider when raising rent prices?
Lease Agreement
During the renewal of the tenant, you may have to negotiate about the changes in rent. Conduct some research about the market rental in your neighboring area and compare your similar conditions to its features. Then, observe how they gradually change the rent over time.
Condition of the Rental Property
Checking and ensuring the quality of your property is necessary for the both parties to be fully aware of the property condition. By doing so, you’ll be more confident to have a raise in the rent knowing that your property exceeds the expectations of your clients.
How much can a landlord legally raise prices in a given year or month?
Month to month Lease
This type of lease offers tenants more advantage and flexibility. It might be quite troublesome to landlords most of the time, however it can also give landlords more chances to discuss with the tenants the changes and raise of rent payments. The landlord can raise the rent by 5% but only twice a year.
Long-term Lease
In terms of long-term lease, a landlord might have to compete with other neighboring proprietors with their rent prices. They are also strictly prohibited to raise the rent more than 10% total or 5% plus the percentage change in the cost of living.
Are there limits to how often a landlord can increase rent?
Yes, there is. Depending on the territorial laws, this case may vary. It is lawfully demanded that frequency in raising the rent can only be once in every 6 months or once in every 12 months. This means that landlords are limited to only raising rents once or twice per year. Before implementing the changes, a letter of notice should be handed to the tenant 90 days before the implementation.
A both parties should also consider what they’ve agreed in the lease and follow what was formally written into it. If the lease allows a mid-year increase of rent then it should be followed. However, if the landlord wants to modify the lease and demand a raise that is not contractual, it should follow the proper process. The changes in the rent payment should consider the side of both parties and is not allowed to be subjective.
Notice for rent increase
Before raising the rent payments, a formal, written document of notice is required. A landlord can’t just increase the payment according to his whim. There are processes to take like giving the tenants sufficient warnings about the issue. By using written notice, you can avoid disputes and prevent misunderstanding and you can assure that the change in rent is not poorly documented.
How Much Notice Period is Required When Raising the Rent?
This varies depending on how long you have been a tenant in a certain housing and how much a raise will rise. If it is on the maximum raise of 10% the lessee is required to give the leaseholder at least 90 days notice. For the raise below 10% for the long-term tenants, a 60 days notice is a must, on the other hand if the tenants lived in a certain unit for not more than a year, a 30 days notice will do.
How to notify a tenant the rent will increase?
Give tenants a good time allowance for them to plan on how to cope up with the increase of the rent and budget accordingly. Provide tenants as much notice as possible to avoid misconceptions. Allow also the tenant to have a gateway to respond and let them have a meeting with you if they wish to do so. Encourage the leaseholders to reply to the rent increase notice for they are most likely to have some questions about it so make yourself ready and available.
Be concise with the details and information to give for smooth information dissemination. Avoid irrelevant information and focus on the important details such as the date when the raising of rent will start and the amount of increase.
Conclusion:
In conclusion, knowing the rights as a landlord or as a tenant is very crucial. Even if the changes may not occur right away, as there are specific steps to follow before raising a rent, it is important to know the basic, or even complex concept of renting. The government institute provided laws and regulations to deal with the unlawful behavior of either landlords or tenants. In order not to cross the drawn line, one should be mindful of how to act in accordance with the law.
Both the tenants and the landlords have their own rights and responsibilities, so gaining knowledge about the raise of rent should not be taken for granted. If you wish to gain more knowledge in this field, a reliable source of information, the Eagle Property Management is here to give you what you need.
Resources
https://www.linkedin.com/advice/3/what-some-tips-negotiating-lease-renewal-rent
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