An unlawful rent increase occurs when a landlord raises the rent in a manner that violates state, local, or federal law.
These state landlord-tenant laws are in place to protect tenants from unfair practices, such as discrimination, retaliation, or increases that exceed rent control limits. While landlords generally have the right to raise rent, knowing when an increase becomes unlawful helps both tenants and property owners avoid costly disputes.
Unlawful Rent Increase Laws
An unlawful rent increase can take many forms, depending on the jurisdiction. Typical situations where an increase may be considered illegal include:
- Raising rent as a form of discrimination against a protected class (under the federal Fair Housing Act or state/local laws)
- Retaliating against a tenant for exercising legal rights, such as reporting code violations or joining a tenant union.
- Increasing rent during the lease term without an explicit lease provision that permits it.
- Charging more than what is allowed under rent control or rent stabilization laws.
- Providing less notice than required by state or local law.
- Raising rent more frequently than the law permits.
Laws governing rent increases vary widely by state. Some states give landlords broad flexibility, while others impose strict rent control measures and notice requirements. In addition to state statutes, many cities and counties have their own rules, including stronger anti-discrimination protections and mandatory notice periods before any increase takes effect.
When Is a Rent Increase Discriminatory?
A rent increase is unlawful when it targets tenants based on their membership in a protected class. Federal law under the Fair Housing Act prohibits landlords from raising rent based on race, color, religion, sex, national origin, familial status, or disability. Many states and local jurisdictions expand these protections to include categories such as sexual orientation, gender identity, source of income, or age.
For example, a landlord cannot raise rent because a tenant has children, receives housing assistance, or practices a particular faith. Even if the landlord applies the increase only to one tenant rather than the entire building, the action is discriminatory.
Tenants who suspect a rent increase is motivated by discrimination can file a complaint with the U.S. Department of Housing and Urban Development (HUD) or the appropriate state or local fair housing agency.
When is a Rent Increase Considered Retaliation?
In many states, landlords are prohibited from raising rent as a form of punishment for tenants who exercise their legal rights. A rent increase may be retaliatory if it follows protected actions such as:
- Reporting health or safety violations to authorities
- Requesting repairs or complaining about poor conditions
- Participating in a court case against the landlord
- Joining or organizing a tenants’ union
- Exercising other rights granted under state landlord–tenant law
For instance, if a tenant organizes a union in their building and the landlord responds the following month by proposing a rent hike on that tenant (and nobody else), that action is retaliatory and unlawful.
Many states create a presumption of retaliation if the rent increase happens within a set period (often 6 months) after the tenant’s protected action, placing the burden on the landlord to prove a legitimate reason for the increase.
Yet, not every state offers this protection. For example, Maine, Missouri, North Carolina, West Virginia, and Wyoming do not have explicit laws against retaliation. Tenants in those states can still challenge rent increases in court. However, the statutes do not explicitly define retaliation as unlawful.
When Rent Increases Are Legal
While unlawful rent increases stem from discrimination, retaliation, or violations of rent control laws, landlords still have broad authority to raise rent in many situations. In general, a rent increase is lawful when:
At the end of a lease term: Once a fixed-term lease ends, the landlord can raise the rent for the renewal, provided they give proper notice.
On month-to-month leases: Because the lease term renews monthly, landlords may raise the rent at the end of any rental period, provided state or local notice requirements are met (typically 30–60 days).
If the lease allows for it: Some leases include clauses outlining scheduled increases during the lease term, such as an annual percentage adjustment. However, certain jurisdictions regulate or even prohibit these types of clauses.
When following frequency limits: Even outside rent-controlled areas, some states or cities limit the frequency at which landlords can increase rent.
Within rent control limits: In rent-controlled areas, increases must stay within the caps set by law. In areas without rent control, landlords can typically raise rent to the market rate.
With proper notice: Nearly all states require advance written notice before any increase takes effect.
Let’s look at an example: A tenant on a month-to-month lease agreement in a state without rent control can receive a notice in June stating that the rent will increase beginning in July. A tenant on a 12-month lease, by contrast, would not face an increase until the lease term ends, unless the lease itself includes a valid, pre-agreed increase clause.
Frequently Asked Questions About an Unlawful Rent Increase
Can you fight against a rent increase?
Yes. If a rent hike qualifies as an unlawful rent increase. For example, because it’s retaliatory, discriminatory, or exceeds rent control caps, tenants can challenge it. Contesting it usually involves filing a complaint with a housing authority, seeking mediation, or pursuing relief through the courts.
What’s the most a landlord can increase rent?
It depends on state and local law. In rent-controlled areas, the law caps annual increases at a set percentage. Elsewhere, there’s often no statewide limit, but landlords must still comply with rules regarding notice, retaliation, and discrimination.
Can I refuse a rent increase?
If you’re on a month-to-month lease, you can refuse the new rate. However, the landlord may then end the tenancy with proper notice. If you’re in a fixed-term lease, the landlord generally cannot raise your rent until the lease ends, unless the agreement includes a valid rent escalation clause.
What is California’s law on rent increases?
California limits annual rent increases for most rental properties more than 15 years old to 5% plus the local inflation rate (CPI), or 10% of the current rent, whichever is lower (Cal. Civ. Code § 1947.12). Landlords must also give written notice, typically 30–90 days, depending on the size of the increase. Exemptions apply to newer construction, many single-family homes, and certain affordable housing. Increases made for retaliatory or discriminatory reasons are unlawful.
