How to Increase Rent
Raising rent is a balance between maintaining profitability and keeping your rental competitive. A fair increase should reflect rising costs while remaining affordable for tenants. Setting the right amount helps you retain reliable renters, comply with state laws, and avoid potential disputes.
1. Understand State Laws on Rent Increases
Before increasing rent, landlords must understand their state’s rental laws, including any limits on rent hikes and required notice periods.
Some states follow the Dillon Rule [1] , meaning local governments can only pass laws if the state explicitly grants them that power. In these states, rent control can only exist if state law allows it. Other states have preemption laws, which prohibit cities and counties from setting their own rent control policies, even if local governments want to.
The table below outlines rent control laws across the U.S.:
| Rent Control Category | Applicable States |
|---|---|
| Dillon Rule (No Rent Control/No Preemption) | West Virginia, Alaska, Nevada, Pennsylvania, Vermont, Virginia, Rhode Island |
| Preempts Rent Control & Inclusionary Zoning | Arizona, Indiana, Kansas, Tennessee, Texas, Wisconsin |
| No Rent Control/No Preemption | Hawaii, Nebraska, Montana, Wyoming, Delaware |
| Rent Control Across Entire Statel | District of Columbia, Oregon |
| Rent Control + Local Ordinances | California |
2. Conduct a Rental Comparison Analysis
Before sending a notice of rent increase, ensure the new rent is fair by comparing similar properties in the area. A rental comparison analysis helps you set a competitive rate while avoiding price gouging or unfair increases.
Here are some key factors to consider for a reasonable increase:
- Local Market Trends: Research rental prices on Zillow, Rentometer, and Facebook Marketplace to compare similar properties in your area.
- Property Costs & Inflation: Rising taxes, insurance, HOA fees, and maintenance can justify an increase, but it should remain within fair market rates.
- Tenant Retention vs. Vacancy Risks: Raising rent too high may push reliable tenants to leave, while a reasonable increase balances profit and stability.
- Property & Neighborhood Value: If you’ve upgraded amenities or your area has become more desirable, a higher rent may be more acceptable.
- Price Gouging Laws: In states like California, landlords cannot raise rent by more than 10% during a declared state of emergency to prevent price gouging (Penal Code § 396).
A well-researched rent adjustment protects you legally and helps maintain good tenant relationships.
3. Review Lease Terms and Justify the Rent Increase
Check your lease agreement to make sure the rent increase aligns with the provisions outlined in the lease:
- Fixed-term lease: You can only raise rent when the lease expires (unless the contract allows mid-term increases).
- Month-to-month: Rent can be adjusted with proper notice, based on state laws.
Make sure the increase is reasonable by considering rising property costs, such as taxes, insurance, and HOA fees. Inflation and the overall cost of living may also justify an adjustment, especially if national or local economic shifts have driven up expenses. Additionally, comparing rental rates in your area ensures your increase remains competitive and avoids pricing out tenants.
When to Use a Rent Increase Addendum Instead
Use a Rent Increase Lease Addendum if the lease allows mid-term rent changes and both the landlord and tenant agree to update the current lease instead of issuing a new notice of rent increase.
4. Check Your State’s Notice Period
Each state has specific laws on how much notice a landlord must give before raising rent.
Most states require 30 to 60 days written notice before the new rent takes effect for fixed-term leases. For month-to-month agreements, landlords still need to provide written notice, but they have more flexibility regarding when the increase applies.
If the lease has expired or there is no formal agreement, landlords must follow state and local laws regarding proper notice before implementing a rent increase.
Refer to the table below to find the required notice period in your state:
| State | Notice Period | Statute |
|---|---|---|
| Alabama | – | N/A |
| Alaska | 30 days | Alaska Stat. § 34.03.290 |
| Arizona | – | N/A |
| Arkansas | – | N/A |
| California | 30 days if the rent increase is 10% or less and 90 days if more than 10%. | CIV § 827 |
5. Send a Rent Increase Notice
The lease agreement may outline how a rent increase notice should be delivered. In general, landlords must provide written notice and use a reliable delivery method, such as:
- In-person delivery
- Posting a copy on the tenant’s door and sending a certified mail copy
- Overnight courier service
- First-class, registered, or certified mail with return receipt requested
If the landlord has emailed the tenant, another option is to send the letter and a hard copy electronically. A text message is generally not a good way to create a reliable paper trail for a rent increase notice.
Sending a rent increase notice by mail (especially if trackable) creates a better record than delivering it via email or text.TIP
Tenant Rights and Fair Rent Increases
Raising rent should be fair, legal, and transparent to protect tenant rights and avoid disputes. Landlords must follow state laws, communicate clearly, and ensure the increase is justified.
- Follow Legal Notice Requirements: State laws dictate how much advance notice tenants must receive before a rent increase. Providing proper notice ensures compliance.
- Justify the Rent Increase: Rent adjustments should be reasonable and market-based, reflecting rising costs, property improvements, or local rental trends rather than arbitrary increases.
- Respect Lease Agreements: Rent can typically only increase at lease renewal unless the contract allows mid-term adjustments. Month-to-month rentals still require written notice under state laws.
- Clarify Lease Terms: Tenants should understand the difference between a lease renewal and a lease extension to make informed decisions.
- Encourage Open Communication: Giving tenants a chance to discuss the increase can help prevent misunderstandings and maintain a positive landlord-tenant relationship.
- Document Everything: Keeping records of all rent-related communications protects both parties in case of disputes.
Avoid Retaliation Claims
Many states have anti-retaliation laws that protect tenants from unfair rent increases or evictions. A rent increase may be considered retaliatory if issued within 60 to 180 days after a tenant files a complaint, reports a violation, or exercises their legal rights.
How Much Can a Landlord Raise the Rent?
Rent increase limits depend on state laws, local rent control policies, and lease agreements. There are no federal laws setting a nationwide cap, but many states and cities have rent control regulations that restrict how much landlords can raise rent within a given period.
For example:
- California: Under the Tenant Protection Act of 2019 (AB 1482) [2] , landlords can increase rent by up to 5% plus the local cost of living, but never more than 10% in a 12-month period.
- New York: The Housing Stability and Tenant Protection Act of 2019 [3] limits rent increases for rent-controlled apartments to 7.5% per lease renewal or the average of the last five cost-of-living increases, whichever is lower.
- Massachusetts: While there’s no percentage cap, landlords must provide at least 30 days written notice before raising rent, and tenants must sign a new lease agreeing to the increase.
In states without rent control, landlords generally have more flexibility but must still provide proper notice as required by law. In some cases, a rent increase may also lead to a higher security deposit if state laws cap deposits as a multiple of monthly rent.
Legal Restrictions on Rent Increases
Landlords cannot increase rent if:
- The lease hasn’t expired and doesn’t allow for mid-term increases.
- Proper advance notice was not given in accordance with state and local laws.
- The increase exceeds rent control or rent stabilization limits.
- The increase is retaliatory for the tenant requesting repairs or reporting a housing code violation.
- The increase is discriminatory against the tenant based on race, religion, or sexual orientation.
- The increase is used as an eviction tactic to force the tenant to move out.
- The increase violates price gouging laws.
Alternative Form
If you are a tenant who has received a rent increase notice and wants to vacate the property instead of paying a higher rent amount, you can send your landlord or property manager a Notice to Vacate form.
How to Write a Notice of Rent Increase
Before filling in the details of your notice of rent increase, ensure the top of the form contains the state you are contracting in.
Step 1 – Date the Document
1. Date of Notice. Provide the date of this notice of rent increase.
Step 2 – Enter Tenant Contact Information
2. Tenant Name. Write the full name of all tenants (the persons leasing or renting the property).
3. Tenant Address. Provide the street address of the property the tenant is leasing or renting.
Step 3 – Fill in Rent Details
4. Name of Original Lease Agreement. Enter the name or title of the original lease or rental agreement between the landlord and tenant.
5. Date of Original Lease Agreement. Write the date of the original lease or rental agreement.
6. Current Rent. Provide the current monthly rent amount.
7. New Rent Amount. Write the new increased monthly rent.
8. Date of Rent Increase. Enter the date the landlord will increase the rent.
9. New Rent Due Date. Fill in the day the new rent is due each month.
Step 4 – Ask for Tenant Acknowledgement
10. Tenant Signs and Returns Letter. You can choose whether or not to include a tenant acknowledgment where the tenant signs a statement acknowledging and agreeing to the rent increase.
Step 5 – Provide Landlord’s Contact Information
11. Landlord Name. Enter the landlord’s full name.
12. Landlord Address. Write the landlord’s mailing address.
13. Landlord Phone Number. Fill in the landlord’s phone number.
14. Landlord Email. Provide the landlord’s email address.
Notice of Rent Increase Sample
Below is a sample Rent Increase Notice. Use our document builder to create a customized notice that meets legal requirements and fits your specific rental agreement.
