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Are there legal limits when it comes to landlords raising rent? This question often comes up at the end of a lease term, when a landlord will typically raise the rent if a tenant wants to enter into another rental agreement.
Generally speaking, unless there's a specific law in place (like a local rent control ordinance), there is usually no limit on how much a landlord can raise the rent. But this can also depend on other factors, including the type of lease at issue.
Here's an overview of what tenants and landlords need to know:
A tenant's lease should be the first place one looks to answer questions about rent. If a tenant has a fixed-term lease (a 1-year lease, for example), then the landlord generally cannot raise the rent during that term, unless the lease specifically allows for it. In such a case, raising the rent can potentially be considered a breach of contract.
However, if the lease at issue is for a periodic term (week-to-week, for example), then the landlord is generally allowed to raise the rent. Generally, there must still be proper written notice given to the tenant. You'll want to check your state and local laws about this, because the amount of notice required can vary.
State laws will often spell out how much written notice a landlord must give before a rent increase takes effect. In some urban areas where real estate is at a premium, local ordinances can also place limits on rent increases.
For example, here's a look at some of the laws about raising the rent in three major states:
Lastly, remember that while there might not be a legal maximum on how much rent can be raised, a landlord should still have a legitimate reason for doing so -- for example, it can't be for a discriminatory purpose, the Chicago Tribune reports. To learn more about your rights in a specific rent-increase situation, it may be best to consult an experienced landlord-tenant lawyer near you.
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.
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