How Much Can a Landlord Raise the Rent Per Year?
The amount of money a landlord can raise the rent depends on where the property is located. In some places, a rent raise is limited to the rate of inflation and can only be issued once a year. But in most places, there are no restrictions on either how much or how often the rent is raised, unless a multi-year lease limits rent increases.
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Rent Control
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Some cities in California, New York, New Jersey, Maryland, and Washington, D.C. are subject to rent control. Rent control is a local law that limits how much, how often and under what circumstances a landlord can raise rent. In some cities rent control only applies to buildings constructed before a certain date. For units that are subject to rent control regulations, if there are any conflicts in a lease and the rent control laws, the rent control rules prevail.
Just Cause and Rent Raises
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Two states -- New Jersey and New Hampshire -- limit evictions to "just cause." This means tenants cannot be evicted unless there is a good reason, such as failure to pay rent, selling drugs on the premises or some other reason listed in the legislation. Some landlords have tried to get around the just cause requirement by raising rent so much the tenant is forced to move. Although the rules applying to this situation are murky, tenants in these states can challenge the rent increase as being tantamount to eviction. In New Jersey, for instance, the law allows the tenant to refuse to pay the increase if they believe the rent increase is "unconscionable" or "unreasonable." The landlord can then take the tenants to court for failure to pay rent but must prove that the rent increase is fair.
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When Rent Raises are Retaliation
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In most cities and states, landlords are expressly prohibited from retaliating against tenants for legitimate actions on the tenant's part. For instance, if a tenant files a complaint with the building department because the landlord has failed to maintain the property up to code and the landlord responds by raising the tenant's rent, this may be considered retaliation. In Wisconsin, for instance, a consumer protection law prohibits landlord retaliation and allows the tenants to sue for double the costs of the retaliation plus court costs. If the rent increase is not found to constitute retaliation, however, you will be subject to eviction.
When Rent Raises Are Allowed
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Outside of rent control, just cause eviction rules and retaliation, a landlord can raise the rent as much and as often as he wants. The only requirement that applies is the notice he must provide to tenants. In most states, the notice must be given 30 days before the rent increase and it cannot be given until any current fixed-term lease expires.
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References
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