What is fair for a cost of living increase in a lease?
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What is fair for a cost of living increase in a lease?
Have an 18 month lease; rent is $300. In my lease it says that the landlord can raise rent with 30-day notice for cost of living. He gave me 9 days notice and wants to raise it $150. Is this legal? I mean a lease is an agreement to a certain amount for a certain time period right? Can’t see how they can just increase it and by a whole $150. Can landlord raise my rent this much?
Asked on April 26, 2011 under Real Estate Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
First, if the lease says that there can be an increase during its term on a 30 day notice, then your landlord can raise the rent in the middle of the lease term. The lease is a contract, after all; if you agreed to a lease that allows a mid-term increase, the landlord can do this.
Second, as for what is a cost of living increase--assuming such is not specified or defined in your lease--then generally, it would be that the landlord could pass on his or her increases to you. So if the landlord's taxes, insurance, and/or utilities, for example, went up by around $150 per month, then that might be a legitimate cost of living increase. At first blush, it seems high, but the thing to do is to ask the landlord to justify or demonstrate the increases, so you can see if you are being asked to absorb legitimate increases in the cost of the property.
Then, if you disagree with the analysis, or that these are permitted cost of living increasss--or even that you're not sure that the lease truly allows mid-term increases--consult with an attorney who can analyze the lease and situation in detail for you. Good luck.
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