Rental Increase Agreement

Rental agreements can be modified to increase payments.

Landlords have the option to amend a lease agreement to increase the cost of rent. Both parties must agree in writing to any increase for it to be enforceable.

Market value

In most real estate markets rental amounts increase as property values appreciate. Many landlords want to have rent that corresponds to the fair market value.

Negotiation

Rental increases cannot be done without both the landlord and the tenant signing a new lease or amending an existing lease. Rental increases cannot be done arbitrarily. The increase must be acknowledged and agreed to in writing by both parties to be enforced.

Rental increase letter

Many landlords increase rent annually, and will make an increase part of the lease term. Thirty days prior to the expiration of a lease a landlord should send his tenant a letter, which discloses the rental increase for the new term.

References

• Free Advice: Landlord Tenant
• LARCC: Tenants Rights: Rent Increases
• The Landlord Protection Agency: Rent Increase Notice