There tends to be a lot of tension in the relationship between landlords and tenants. Even when they maintain an amicable dynamic, both parties usually have different priorities. Landlords want to keep their costs as low as possible while generating as much revenue as possible for each rental unit they own. Tenants usually want to protect their privacy and to keep their cost-of-living expenses as low as possible.
Factors including increased operating expenses and the increase in market value of real estate may result in landlords deciding that the rent they collect is not enough. They may seek to increase monthly rental payments. When can landlords increase rent?
When renewing a lease
Most residential leases only remain in effect for a year. Other residential leases may involve a month-to-month agreement. Typically, landlords cannot adjust rent in the middle of a contract.
However, when the lease is set for renewal, they can then make adjustments to the terms. When the time comes to renew a lease, a landlord can announce a significant increase in rent. Currently, rules in Pennsylvania do not prohibit landlords from increasing rent, nor does the law limit the amount of a proposed rent increase.
While there are bills working their way through the legislature to change these rules, landlords can theoretically adjust rent as frequently as their leases allow and in any amount they deem appropriate.
When the tenant agrees in writing
Sometimes, landlords try to sidestep the rules that lock them into rental pricing by negotiating directly with tenants during a lease. They might even try to trick or manipulate a tenant into signing an agreement without realizing that doing so is voluntary. If the tenant agrees to a new arrangement with higher rental payments, the landlord can theoretically enforce those new terms even if the lease is months away from its renewal date.
Landlords hoping to offset their operating costs may need to review their case carefully to determine when a rental rate increase is feasible. Tenants generally also need to know what rules apply when landlords want to change the rate they charge for a rental unit.
Understanding the laws that govern landlord-tenant arrangements can help both parties in a rental agreement protect themselves. Rent increases are one of several issues that may cause significant conflict between landlords and their tenants.
