Rent Increases for Month-to-Month vs. Leases
The main deciding factor on how and when you can raise the rent of your property is the type of agreement you have with your tenant. If you signed a tenant on a lease for a set period of time, the monthly amount is locked in at the current rate until the end of the lease term, unless there is already a stipulation in the lease about increasing the monthly rent. When you renew a lease with a tenant (or sign on a new tenant, if the former left), you can raise the cost per month then.
Month-to-month agreements are different. Humboldt County properties that use a month-to-month rental agreement can choose to raise the rent at any time by giving proper notice to the tenant (unless there is a stipulation in the rental agreement that specifically limits raising the rent).
Giving Tenants Advanced Notice of Rent Increases
If your Humboldt rentals are using a month-to-month agreement, you can increase rent. According to California law, the amount of time between sending the notice and the increase depends on how much you intend to raise the rent and how much the tenant is already paying.
- 30-day notices are required when you’re planning to raise rent by 10 percent or less of the rent charged at any time during the 12 months before the rent increase takes effect.
- 60-day notices are required when you’re planning to raise rent by more than 10 percent of the rent charged at any time during the 12 months before the rent increase takes effect.
For example, you would only have to give a 30-day notice if you are currently charging $600 per month in rent and you want to raise it to $660 — a $60 increase is 10 percent of the current rent of $600.
However, if you wanted to raise the rent by another $30 within the same 12-month period, you would have to give a 60-day notice before the second raise could go into effect. This is because all the increases over the last 12 months are used to calculate the percentage based on the lowest rental rate the tenant paid during that time period — and $90 is 15 percent of $600.
For more information on rent increases, rent collection and all property management questions you may have, contact us at Real Property Management Humboldt at 707-515-7200or use our contact form.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.