Rent increase and renewal: what to agree in advance
Money · 2 min read · Updated
Surprises about rent increases cause friction. Agree the rule at the start and both sides know what to expect.
Set the increase in writing
Common agreements allow a modest percentage increase on renewal, often around 5 to 10 percent. Our drafts let you pick a percentage between 0 and 15.
Renewal is a new agreement
For an 11-month agreement, renewal normally means signing a fresh agreement with updated dates and rent, and paying stamp duty again.
State rules may apply
Some states have rent control laws that limit increases for certain tenancies. Check the law that applies to your property and tenancy.
Give notice
Both sides benefit from a notice period before renewal, so there is time to negotiate or look elsewhere.
Common questions
- Can rent be increased during the 11 months?
- Only if the agreement says so. Most agreements fix the rent for the term.
- What if we just keep living there after the term ends?
- Without a new agreement your position can be unclear. Sign a renewal.
General information, not legal advice. Laws and procedures vary by state and change over time. Check official sources or a local lawyer before you act.