How to Negotiate If Your Landlord Raises Rent

Finding a rental that you love to live in is a great thing. Finding a rental that you love to live in and then having your landlord hike your rent? Not so much. There are lots of reasons why a landlord may choose to impose a rent increase, including adapting to market or neighborhood trends or upping the rent to cover things like unit improvements, maintenance needs, or property tax increases. As a tenant, though, it can be tough to hear that your rent will go up—and in some cases, it is tough to come up with the additional monthly cost.

36 percent of all Americans live in rental properties, according to reporting from iProperty Management, and since 2010, the average cost of those rentals has increased 31%. If you’re making minimum wage, you’d have to work 127 hours a week to afford an apartment in many major cities, not to mention the responsibility of covering the cost of utilities, renter’s insurance, and other essentials (you know, like food). And if you’re already stretched thin, a rent increase could easily price you out of your home.

So there’s good news and bad news here. Let’s start with the bad news: rent increases are pretty common, especially in high-demand cities. The good news, though? In some cases, you may be able to negotiate the increase and keep your rent stable for another lease term—or at least minimize the amount of the bump.

Below, we’ve outlined a bit about what you should know about rent increases, including some tips for negotiating and (possibly) reducing the added burden.

Wait, is a Rent Increase Legal?

Yes, rent increases are legal in most cases. Landlords and property management companies are allowed to charge whatever the market allows for a rental unit, and in most states, there is no limit to the amount that your rent can be increased.

However, there is an important caveat here: your landlord can’t just raise your rent whenever they feel like it. For instance, you can’t get a rent increase during your lease term. If you’re on a month-to-month lease or your lease is up, and you’re re-upping it for another term, your landlord can increase the amount they’re charging for rent.

Important to note is that many states do have laws around how much notice must be given. Search your state name plus “rent increase notice” to determine how many days in advance your landlord must notify you before hiking up the rent for the next term.

Tips for Negotiating a Rent Increase

The golden rule is that you don’t want to be spending more than 30% of your post-tax income on housing. Many renters, however, are paying more than that or are cutting it close enough that an increase in their monthly rent cost isn’t tenable on their current income.

If you’re facing a rent increase and you either can’t afford the additional cost, or it’s going to take too large of a chunk out of your income, you do have some steps that you can take to try and negotiate. Keep in mind that so long as the increase is happening legally, your landlord is under no obligation to budge on their decision. But if you have a positive relationship with them and you’ve been a good tenant, you might have the leverage to either reduce the increase or stop it entirely. Here’s what to do.

Start with some research

Talk to your landlord

Write a hardship letter

Ask for a compromise

What if Your Rent Increase Negotiations Fail?

It’s an unfortunate fact of renting that you don’t always have as much power as you’d wish over your living situation. Taking the steps above to try and negotiate a rent increase can have a great outcome, but they can also lead you nowhere.

You should never be paying more in rent than you can afford, even if it means that you have to move out of an apartment you’re really fond if. So if a rent increase prices you out of your unit and your negotiations fail, it’s time to go apartment hunting. Keep in mind these 10 things you should consider when looking for a new apartment. Check out our tips for finding short-term housing if you can’t find exactly what you want right away.