Raising The Rent

Should a landlord so desire to raise the rent, does it take effect immediately negating any previous agreements? Would tenants sue you if you decide to terminate the tenancy if they are unwilling to pay slightly more than was previously agreed?

 

In the rental agreement you have a set date (usually once a year) when the landlord can choose to raise the rent. Sometimes the raise is defined (ie. raise equivalent to the inflation or similar agreements) though it can also not be defined, then it's up to the landlord to decide a proper new rent based on the vacancy and rent levels in the same neighbourhood. For me, raising the rent at any other time is a big no no.

 

If the landlord wants to raise the rent they have to provide proper notification to the tenants based on the regulations of the state/ country of the property in question. The landlord can't raise the rent without the proper notification. Also you must place this information in writing in the form of a new contrac with the tenant. Most times a landlord will increase the rent for a property before the renewal of a lease agreement.

 

You can't raise the rent until the current lease agreement runs its course, whether you give them notice or not. You'll probably want to give them the courtesy of such notice 30 days before their current lease expires, or whenever they ask to renew the lease. If you try and do that during the lease agreement, then you're going to find yourself taken to court or completely ignored. Rent can be raised from one lease to the next by any amount, but you can't just raise the rent without notice, unless someone was dumb enough to sign an agreement with that clause.

 

I do not think landlord can raise the rent just when they wish. It is totally against the law. I believe it can be done once in a while when fresh tenants are available or when new lease is formed.

 

It might be different in different countries, but here in Europe (at least in all the countries I've lived in) the lease agreement is often open ended. So you sign a lease and it's valid from the signing date until cancelled by either party. Usually a 30 to 60 day notice is required prior to cancellation. In these rental agreements, it's often noted that the rent can be adjusted once a year, usually on the same date as the original was signed. Of course a notice is required of this too.

 

Got that, after a lease renewal then i can raise the rent as per the current market value...right?...lest i find myself in a hot mess once again, thankfully i got wise counsel on this board and my real estate agents...still learning the ropes on this real estate management topic

 

I think raising the rent should be done in a periodic manner rather than just trying to increasing the rent. Also one should be very careful while raising the rent.

 

The main issue with rent raising is the fact that the owner deserves to get more, but at the same time the tenant might not be able to pay, so it ends up being a social issue.

 

I sign 12-month leases with my tenants; when we renew the contract, I ask an increased rent that roughly meets inflation rates. It is a little cleaner to do so every two years by 5%; it's still a small increase, but it's less often, and the tenant dislikes the landlord less. If tenants change, I check whatever matches the neighborhood/market and set my price around there.