Rent is one of the biggest expenses renters have to deal with. When they start renting a place, they sign a lease agreement that often includes clauses on annual rent increase. Most renters are unaware of how rent increase works or what factors affect it. When a lease agreement ends, landlords may emerge with higher rent prices for various reasons, which can catch renters off guard.
In this blog, we’ll explain what rent increase is, what factors influence it, and how much renters should expect to pay. We’ll also provide helpful tips that renters can use to negotiate rent with their landlord.
Rent increase is the amount that landlords raise their tenant’s rent after a lease agreement expires. It is a legal decision that landlords can make if they want to match the market rate or maintain rental profit margins.
Several factors can influence how much rent increase a landlord charges. These include:
The amount of rent increase varies depending on the landlord, the building, location, and other factors. In Florida, for example, there are no rules on how much a landlord can raise their rent.
However, the landlord has to inform the renter in writing. According to Florida law, a landlord is obliged to give their tenants a notice of rent increase 60 days before their lease ends. This notice should include the new rent amount, the date it goes into effect, and other essential details.
While renters might not be able to control what their landlord decides to increase their rent, there are ways they can negotiate. The tips below can help renters try and reduce or eliminate the increase in rent.
Increasing rent is a reality of renting property, and all renters should prepare for it. Landlords provide notice of rent increases with their expiry of the lease agreement.
However, it's worth noting that renters can negotiate and request a reasonable return or sometimes get extra concessions. As a renter, always interact positively with the landlord, be aware of the market rates, and make an informed decision when renting an apartment.