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Most notices of rent increase state that the increase will go into effect at the beginning of the rental period. For example, a landlord who wishes to increase the rent by 10 percent or less in a month-to-month rental effective on October 1 must make sure that notice of the increase is delivered to the tenant personally by September 1 or mailed to the tenant by August 27. However, a landlord can make the increase effective at any time in the month if proper advance notice is given.
If the increase in the rent becomes effective in the middle of the rental period, the landlord is entitled to receive the increased rent for only the last half of the rental period.
For example:
• Rental period: month-to-month, from the first day of the month to the last day of the month.
• Rent: $500 per month.
• Rent increase: $50 (from $500 to $550) per month (a 10 percent increase).
• date that the notice of rent increase is delivered to the tenant personally: April 15 (that is, the middle of the month).
• earliest date that the rent increase can take effect: May 15.
If the landlord delivers the notice on April 15, the increase becomes effective 30 days later, on May 15. The landlord is entitled to the increased rent beginning on May 15. on May 1, the tenant would pay $250 for the first half of May (that is, 15 days at the old rent of $500), plus $275 for the last half of May (that is, 15 days at the new rent of $550). The total rent for May that is due on May 1 would be $525. Looking at it another way, the landlord is entitled to only one-half of the increase in the rent during May, since the notice of rent increase became effective in the middle of the month.
Of course, the landlord could deliver a notice of rent increase on April 15 which states that the rent increase takes effect on June 1. in that case, the tenant would pay $500 rent on May 1, and $550 rent on June 1.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Tenants Guide To Rent Increase Example is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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