Wondering what to do when your landlord raises the rent? Unless you’re living in a rent-controlled property, rent increases are hard to avoid. After all, landlords need to keep up with rising prices. That said, it doesn’t mean you don’t have options. Here’s a guide on how to handle these situations. Read on to learn more.

Key Takeaways

Graph shows rising house prices.Why Landlords Raise Rent

To start, let’s talk about the reasons why landlords raise rent. Generally, landlords do not raise rent just because they can. So why?

Inflation can put pressure on landlords’ revenue and cash flow. When there is an increase in operational costs, such as utilities, employee salaries, repairs, property upkeep, and even renovations, landlords need to look for a way to pad their income. Thus, the rent increase.

Aside from that, there’s also supply and demand. When there’s a high demand for housing in the local rental property market, landlords and property rental companies may increase rent for higher income potential.

How Much Can a Landlord Legally Raise the Rent in Texas?

Texas does not have any statewide rent control. This means that there is no regulation that controls how much landlords can increase their rent. So, landlords have full discretion over how much they want to raise their rent prices – whether it’s by 5%, 10%, 50%, or even more.

However, there are still some laws and guidelines that Texas landlords need to follow regarding rent increases. First, there’s laws around when landlords can implement the increase in certain situations. Landlords cannot impose one in the middle of fixed-term leases–they must wait until the lease term’s end. Then, with month-to-month leases, they must provide 30 days’ prior notice (or the day given in the notice). Of course, these rules don’t apply if your lease requires other prior notice periods.

Also, on another note, landlords cannot increase the rent as a form of retaliation, as well as of discrimination under the Fair Housing Act. So, if you have reason to believe your landlord is doing it for the wrong reasons, you might want to take further action.

two wooden toy houses next to each otherWhat to Do When Your Landlord Raises Rent

Considering all this, you should stay prepared for the possibility your landlord will increase your rent at the end of each lease. But what can you do when your landlord raises the rent? Here are the steps we suggest you take:

Check Lease Agreement

When you’re facing a rent increase, the first thing that you need to do is to check your lease agreement. Here, you can look to make sure the price hike does not violate your contract. Find whether your landlord follows local laws regarding notice periods, the timing of the increase, among others.

Evaluate Your Budget

Any rent price increase will have an effect on your monthly expenses. Considering this, it is important that you reassess your budget and see if you can comfortably afford the new rent without putting so much strain on your finances. If it does, you might need to negotiate with your landlord or consider moving to a rental property that is well within your budget.

Red and yellow arrow is on top of two blue blocks. The arrow is pointing upward, which could represent growth or progress. The blocks are stacked on top of each otherHow to Negotiate a Rent Increase: 9 Tips

If you feel that a rent price hike will have a significant impact on your finances, you can try to negotiate with your landlord. Believe it or not, a lot of landlords are very flexible and forgiving, especially if you’re a reliable tenant. With that, here are some tips on how to negotiate a rent increase effectively:

  1. Approach your landlord with utmost respect and honesty. Start the conversation on a positive, respectful note. Be direct but kind. Let them know you appreciate their time and attention.
  2. Be clear with your purpose and state your concerns regarding the increase. Explain that you’d like to discuss the recent rent hike. Outline your specific concerns without placing blame. Stay focused on your goal: reaching an understanding.
  3. Admit the impact of the rent increase on you and that you will probably have to move because of it. Share how the increase is affecting your budget. Mention that moving may become necessary. Be sincere without making it sound like a threat.
  4. Highlight why you should be given some leeway regarding the increase. Emphasize your record as a responsible tenant. Explain why stability benefits both you and the landlord. Suggest you’re open to compromise.
  5. Emphasize what makes you a good tenant and provide specific reasons that support this.
    Point to your on-time payments, upkeep of the property, and positive rapport. Use concrete examples if possible. Let your track record speak for itself.
  6. It’s highly unlikely that you can ask your landlord not to increase your rent. Avoid unrealistic requests that may shut down the conversation. Instead, acknowledge their right to adjust rent. Focus on finding a workable middle ground.
  7. The more realistic approach is to bring it down. Ask if they’re open to reducing the proposed increase. Frame it as a mutual benefit. Express that you’re willing to meet halfway. For example, ask your landlord to lower the 10% increase to 5% now and have the other 5% take effect for the next lease. This shows you’re flexible and thinking long-term. It reduces the immediate financial burden on you. It also gives the landlord a predictable timeline.
  8. You can also ask for a longer lease term with a lower rent increase. Offer to commit to a 12- or 24-month lease. Highlight the stability this offers them. Mention that it saves them the cost and effort of tenant turnover. This can be beneficial for the landlord since you’ll be saving them from the trouble of finding new tenants. Remind them that vacancy equals lost revenue. Stress how your continued tenancy adds value. Make the choice easy and appealing.
  9. Lastly, stay calm and professional throughout your conversation and respect whatever the decision of your landlord may be. Keep your tone steady, even if emotions run high. End on a polite note, regardless of the outcome. Leave the door open for future communication.

Golden key unlocks house amidst colorful homesHow Bay Management Group Can Help

There is no rent control in Texas. As such, landlords can raise the rent as much as they want as long as they comply with the lease terms and prior notice requirements for fixed and monthly leases. That being said, what can you do when your landlord raises the rent? You can negotiate with them. Being a little strategic (and respectful!) can go a long way.

In the meantime, if you’re looking for a new rental, we’re here to help! Our professional property management team is here to make renting easier for you, whether it’s through handling maintenance and repairs, making the policies to follow clear as day, or just generally addressing your questions or concerns. Want to get started? Look at our listings today!

 

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