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Can I Raise the Rent on a Tenant That Has a Lease?

Tenants rent houses with leases or periodic rental agreements. A lease is a contract to rent a house for a fixed period of time. Leases often run for six months to one year. Periodic rental agreements are also called month-to-month rental agreements. Theyre usually agreements to rent a house for 30 days with automatic renewal. Federal, state and local laws and regulations determine the requirements for leases and periodic rental agreements. The type of lease or rental agreement usually determines if the landlord can raise the rent.

Leases

    A fixed term lease specifies the date the lease expires. During the period of the lease, the landlord usually cant raise the rent unless there is a provision in the lease that allows rent increases. Often the provision includes a limit on how often and how much the landlord can increase the monthly rent. Some leases have escalator clauses. The landlord may increase the rent if the expenses for the rental unit increase. For example, if the landlord must pay more for utilities or property taxes, he may increase the rent.

Changes to Leases

    If the landlord and the tenant both agree in writing to a rental increase before the expiration of the lease, the landlord may increase the rent. Landlords usually cant terminate a lease without cause. It isnt an option to cancel the lease to increase the rent.

End of a Lease

    The lease ends on a specified date. The tenant is expected to vacate the rental unit by that date or initiate a new lease agreement. In some states, if the tenant remains in the house or apartment after the lease ends with the landlords approval, the terms of the old lease may continue on a month-to-month basis until a new lease is developed. Some leases have automatic renewal clauses.

Periodic Rental Agreements

    With a month-to-month rental agreement, a landlord can usually increase the rent with a 30 or 60-day notice. In California, for example, if the rent increase is 10 percent or less of the lowest rent paid in the last year, landlords give a 30-day notice of the rent increase. If the rent increases more than 10 percent, a 60-day notice is necessary.


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