Ruled for Landlords to Increase Rent
Oct 31, 2017 Home Trading Steps
Tenants are quite aware and use too, of the practice of increase rent by landlords after a certain period of time. But the landlord cannot do the same within overnight or whenever he feels like to do so. Hence the landlord needs to keep in mind certain rule while raising the rent and he needs to follow the same.
Read through to know the rules:
Once a year: it should be noted that a landlord can increase only once in a year when the lease needs to be renewed. So the tenant should see that the landlord is increasing the rent only when the lease time period is getting over. Make sure that you as tenant read the agreement thoroughly, especially the clause related to the rent increase.
Prior notification: before raising the rent the landlord should notify the tenant on time. This gives time to tenant whether he or she wants to shift somewhere else or willing to pay the increased rent. It is advised that the landlord should give 30 days’ advance notice to the tenant and should increase about 10 percent of the rent amount. And if the raise is more than 10 percent then the landlord needs to inform the tenant 60 days in advance. A tenant should also receive a written notification of the change.
Genuine reason: there needs to be a valid reason for the increase in rent. Such as the reason could be an increase in rent after a brief period of 2 or 3 years, completion of the lease tenure, due to the maintenance or repair work of the apartment or there is a rise in rent across the market. The landlord should be open for some negotiation if required.
Present market standard: the tenant needs to keep a track of the ongoing market price and make sure that the landlord raises the rent according to that only. The landlord should also remember that if he or she increases the rent in an unreasonable manner then the tenant will leave. Also, the tenant needs to ensure that with the increase in rent, he or she gets better facilities compensating the rise in rent.
So, the landlord needs to be reasonable enough before he or she increases the rent. And similarly, the tenant should also keep track of everything around and ask the landlord for the increase if it is unreasonable.
Read through to know the rules:
Once a year: it should be noted that a landlord can increase only once in a year when the lease needs to be renewed. So the tenant should see that the landlord is increasing the rent only when the lease time period is getting over. Make sure that you as tenant read the agreement thoroughly, especially the clause related to the rent increase.
Prior notification: before raising the rent the landlord should notify the tenant on time. This gives time to tenant whether he or she wants to shift somewhere else or willing to pay the increased rent. It is advised that the landlord should give 30 days’ advance notice to the tenant and should increase about 10 percent of the rent amount. And if the raise is more than 10 percent then the landlord needs to inform the tenant 60 days in advance. A tenant should also receive a written notification of the change.
Genuine reason: there needs to be a valid reason for the increase in rent. Such as the reason could be an increase in rent after a brief period of 2 or 3 years, completion of the lease tenure, due to the maintenance or repair work of the apartment or there is a rise in rent across the market. The landlord should be open for some negotiation if required.
Present market standard: the tenant needs to keep a track of the ongoing market price and make sure that the landlord raises the rent according to that only. The landlord should also remember that if he or she increases the rent in an unreasonable manner then the tenant will leave. Also, the tenant needs to ensure that with the increase in rent, he or she gets better facilities compensating the rise in rent.
So, the landlord needs to be reasonable enough before he or she increases the rent. And similarly, the tenant should also keep track of everything around and ask the landlord for the increase if it is unreasonable.
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