Implementing the annual rent increase

As a landlord, you are permitted to implement an annual rent increase. Since we frequently receive questions about this topic, this blog explains the rules regarding rent increases and how to inform tenants in a timely manner.

What percentage can the rent be increased by?

Rent can be increased once a year. Our rental agreements always specify a date when this is allowed, but the rent can also be increased during the first year of the lease. Many large housing corporations implement increases for all properties on July 1st. As a landlord, you can generally follow this practice. If the start date of the lease is before July 1st, you may increase the rent on July 1st. After that, you can only do so again after a full calendar year. The rent increase is tied to inflation and is capped by the government. Currently, the maximum rent increase is 5.8%.

Rules regarding rent increases

There are several rules associated with increasing rent. First, the increase must be communicated to the tenant at least 2 months before the effective date. This should be done in writing, and an email is sufficient. Additionally, you must specify the percentage by which the rent is being increased, what the new rent amount will be, and the effective date of the new rent.