Rent increase for Month to Month Agreements- Are They Allowed?

Month-to-month rental agreements can be a flexible option for both tenants and landlords — until the topic of rent increases arises. While landlords typically have the right to raise rent under these agreements, they must follow specific rules, including providing proper notice and adhering to legal limits on the amount of the increase. Landlords must also comply with the Federal Fair Housing Act to avoid discriminatory rent increases.

In this article, we’ll break down everything you need to know about rent hikes for month-to-month leases. From notice requirements and rent caps in certain areas to what qualifies as an illegal increase, we’ve got you covered. Additionally, rent control laws in certain areas may limit how much and how often rent can be increased.

Tenants will find practical tips for negotiating with landlords if the new rent feels unaffordable, along with strategies to manage housing costs. Landlords, on the other hand, can learn the proper procedures and legal considerations to avoid disputes.

Understanding the rules around month-to-month rent increases empowers both tenants and landlords to navigate these changes confidently and protect their finances.

Can a landlord raise rent month to month and how much notice is required?

The short answer is yes.  Landlords can raise the rent for month-to-month tenants, but they must follow state and local regulations about providing proper notice. Some states have statewide rent control laws that further regulate rent increases.

The notice periods vary by location, typically ranging from 30 days to a few months, and are often specified in the rental agreement or relevant landlord-tenant laws. Understanding these requirements ensures landlords stay compliant while giving tenants adequate time to plan.

Frequency of rent increases

Beyond notice requirements, the frequency and size of rent increases are also governed by specific rules to maintain fairness. Common regulations include:

• Annual limit:  In many areas, landlords are permitted only one rent increase per year.
• Minimum interval: Some jurisdictions enforce a mandatory waiting period between increases, usually six months to a year.
• Rent control limits: Rent control laws or special agreements might further limit how frequently landlords can adjust rent. Always consult local regulations for specifics.

Rent increase restrictions

Landlords have the right to raise rent, but there are situations where a rent increase could be against the law.

Rent control and other limitations

In some areas of the country, rent control laws restrict annual rent increases to keep housing affordable and protect tenants from excessive hikes. These laws have restrictions on how much and how often landlords can raise rent.

Here's a closer look at the elements that govern these controls:

• Rent control caps: In jurisdictions with rent control, there are strict caps on how much a landlord can increase rent within a given period, typically annually. For instance, some cities may limit rent increases to a certain percentage of the existing rent or tie them to the consumer price index.
• Justification for increases: Beyond the caps, landlords may have to justify any rent increases and get them approved by a local housing board.
• Coverage and exemptions: Rent control laws vary widely by location, and not all rental properties fall under these laws. For example, newer buildings, certain types of temporary housing, or units in smaller buildings might be exempt from these regulations. 

Illegal reasons for rent increases

Landlords should be aware that certain reasons for raising rent on month-to-month tenants are not allowable by law. These illegal situations include:

Discrimination

Fair housing laws protect tenants from discrimination based on national origin, race, religion, family status, or disability. So, if your landlord raises your rent just because you belong to one of these protected groups, that is illegal discrimination. 

These laws make sure that everyone has a fair chance at housing opportunities, regardless of their identity or personal circumstances.

Retaliation

Landlords cannot increase rent to punish tenants for exercising their legal rights, such as reporting maintenance issues or joining a tenant union. Such actions are considered retaliatory and are prohibited by law.

Breach of lease agreement

If a lease agreement specifies that rent cannot be increased during the lease term, any attempt to raise the rent before the term ends violates the contract.

How to raise rent legally on a month-to-month lease as a landlord

Raising rent on a month-to-month lease doesn’t have to lead to tenant disputes if handled thoughtfully. Here are actionable tips to ensure you approach the process professionally and legally:

1. Start with market research

Before deciding on a rent increase, research local rental rates. Tools like Rentometer or Zillow can help you determine if your proposed increase aligns with comparable properties in your area. Fair and competitive pricing makes it easier to justify the change to tenants.

2. Frame the conversation

While not always required, providing context for a rent increase can go a long way in maintaining a good landlord-tenant relationship. Briefly explain the reason behind the adjustment, such as rising property maintenance costs, utilities, or taxes.

3. Focus on retention

Good tenants are worth keeping. If you’re concerned about tenant turnover, consider these strategies:

• Small increases: Implement modest rent adjustments over time instead of larger, infrequent hikes.
• Incentives: Offer benefits like upgraded amenities or a long-term lease option to soften the impact of the increase.

4. Communicate clearly and respectfully

Send a professional, written notice of the rent increase well in advance of the required notice period. Be clear, respectful, and offer a direct point of contact for questions or concerns.

5. Be open to negotiation

If a tenant pushes back, listen to their concerns. Propose solutions like a phased increase or a fixed rent for a longer lease term. Flexibility can reduce turnover and foster goodwill.

6. Document everything

Keep detailed records of the rent increase notice, tenant communications, and any agreements. This protects you legally and ensures clarity for both parties.

Tenants- how to respond if your landlord raises your rent

If your landlord provides notice of an upcoming rent increase, there are steps you can take in response:

Verify the increase with local laws

Check your city or state's tenant laws and regulations. These outline your landlord's obligations and details around increasing the monthly rent. If you suspect your landlord isn't following the laws or need assistance in understanding the regulations, consider contacting local tenants' rights groups or housing agencies.

Request written notice

In most places, the law requires landlords to give you a written rent increase notice. The written document should state:

• Amount: The new, higher rent.
• Date: When the rent increase takes effect.
• Details: Any additional information about the increase.

If your landlord only verbally informs you about the rent hike, you should politely request that they provide the details in a written letter or email. Oral notices of rent increases are not valid in most states without tenant agreement.

Requesting the notice in writing protects you by:

• Legal compliance: It confirms that the landlord provided proper notice as required by law.
• Record keeping: Provides documentation in case disputes arise regarding the rent increase later.

If a landlord fails to give adequate notice of a rent increase, the tenant may continue paying the current rent until the increase is legally enforceable.

Review your lease agreement

Read through the lease or rental agreement that you signed when you moved into the rental property and look for any sections that talk about rent increases. Common agreements include language around:

• Notice: How much notice is needed before a rent increase occurs.
• Limits: Caps on the amount by which rent can be increased at one time.
• Regulations: Any additional rules concerning rent hikes.

Strategies for negotiating rent increases

Tenants don't have to simply accept a rent increase at face value. By taking the right negotiation approach, you may be able to secure more favorable terms.

Prepare your case

Start by gathering information to build a strong case. This includes communication regarding the increase, your rental agreement, and any other relevant documents.

• Highlight your value as a tenant: Landlords want responsible tenants who consistently pay rent on time and take good care of the property. Don't be afraid to emphasize your positive track record and highlight any instances where you've gone above and beyond as a tenant. 
• Market rates: Be sure to understand rental prices for similar properties in your area. Websites like Zillow, Rentometer, and local real estate listings can give you information on the going rates for comparable units. This research can provide evidence to support your case if the proposed rent is above the average for similar properties.

Communication

Even if the rent hike follows the rules and is at market rates, you may still be able to negotiate if you feel the new amount is unreasonable or unaffordable for you. Communicate with the landlord by:

• Expressing concerns in writing: Write a letter to your landlord expressing your concerns about the rent increase and your financial situation. Highlight your record as a good and responsible tenant.
• Seeking an in-person discussion: Ask for an in-person meeting or a phone call to discuss the rent increase more personally with your landlord.

Deciding on your next steps

When faced with a rent increase, weigh your options carefully and decide on the best course of action based on your circumstances. Here are the paths you might consider:

Accept the increase

If the proposed increase is manageable within your budget and you value staying in your current home, accepting the new rent may be the simplest solution. This option allows you to avoid the hassle and expense of moving.

Before agreeing, make sure you understand the new rental agreement terms and how they might affect your future financial planning.

Search for alternatives

If the new rent is beyond what you can comfortably afford, or if you feel the value doesn't justify the cost, it may be time to explore other housing options. Start by looking at listings within your budget in your desired area.

Consider the costs and logistics of moving, such as hiring movers, security deposits, and potential overlaps in rent. This approach can lead to finding a more affordable living situation that better fits your financial needs.

Tips to manage rent costs

Rent increases might be unavoidable, but there are options you can try to keep your rent as low as possible.

Sharing your space

If you have extra space in your current rental, finding a trustworthy roommate can help split the rent burden and make the monthly rent payments more manageable. If you decide to go this route, be sure to vet potential candidates by checking references, employment history, and credit reports. 

You should also make sure that your lease permits additional occupants to avoid any legal issues later on. 

Negotiating lease terms

You could offer to sign a long-term lease in exchange for a lower monthly rent. This could work since landlords often prefer the stability of a long-term tenant over the uncertainty and potential vacancy costs of frequently changing renters.

Another option is to propose prepaying rent for several months or even a year in advance in exchange for a discount. This can be particularly appealing to landlords who value financial security and reduced administrative tasks.

Can landlord increase rent month to month? Your questions, answered

Rent increases on a month-to-month lease require tenants and landlords to understand their rights and obligations under local laws. While rent hikes are often legal, knowledge about notice periods, discrimination protections, and negotiation strategies can help you reach a fair outcome.

For tenants facing an unaffordable increase, exploring alternative housing options can help you maintain financial stability. Landlords must carefully follow proper procedures to remain compliant and avoid disputes. Open communication and a willingness to compromise can lead to a reasonable resolution.

Renters and property owners should also stay current on rental regulations and market trends. This foundation allows month-to-month agreements to provide flexibility while keeping rent amounts equitable.

Can a landlord raise rent on month-to-month leases? FAQs

Can a landlord increase rent without notice?

No, a landlord generally cannot increase rent without providing proper notice. Laws in most states require landlords to give tenants advance written notice before a rent increase takes effect. The notice period typically depends on the type of lease and local regulations.

What is the maximum rent increase allowed?

The maximum rent increase a landlord can impose differs depending on local regulations. Some regions have no restrictions, while others limit the increase to a certain percentage annually or tie it to the inflation rate. Areas with rent control or stabilization laws may further restrict the amount.

What is the law for month-to-month tenants in New York State?

In New York State, landlords must give month-to-month tenants written notice at least 30 days before any change in the tenancy terms, including rent increases or lease termination. Tenants also have certain protections under rent stabilization laws in specific regions like New York City, which have further limits on rent hikes and provide additional rights to tenants.