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Why do landlords raise the rent? 

On Behalf of | Sep 7, 2023 | Landlord/Tenant Matters |

In many cases, landlords do have the right to raise the rent. They may be required to give advance notice. This can vary depending on how long a person has lived in the space, but notice usually has to be 30, 60 or 90 days before the rent is increased. So there are rules that must be followed, but raising the rent itself is not prohibited.

But why is it that a landlord would decide that they were going to raise the rent? What changed between the time that the tenant signed the lease initially and the time that they were being asked to sign a new lease at a higher price point?

Market demand

In many cases, it’s just because of market demand. If rent is going up everywhere else, landlords can determine how much someone would pay for the space. They may realize that the amount they’re charging is below what they could theoretically get, so they increase the total just to keep up with the market. This is often based on supply and demand, focusing on how many apartments are available and how many people are trying to rent them.

Expenses increased

Another potential reason is that expenses have gone up. Maybe the rent previously included utilities, like gas and electricity, but the cost of those utilities has increased. The landlord may raise the rent in order to counter these increases.

They’ve invested in the property

Finally, landlords will sometimes make financial investments in their own property. They may add new amenities or carry out renovations. These can be expensive, and the landlord may increase the rent to make up for the money that they already invested.

These are just a few examples of why rent may go up. Both landlords and tenants need to understand the legal steps to take and how to adhere to local rent laws.