Renting out your property can be a lucrative investment. But if you want to maintain your yields, you’ll need to increase the rent once in a while. 

Rent increases are an important aspect of managing rental properties in Cleveland. As a landlord, it is essential to understand the regulations and guidelines surrounding rent increases to ensure legal and fair practices. In this article, we will discuss how much you can increase rent, when you can increase it, how to go about it, and the importance of giving notice to your tenants.

How Much Can You Increase Rent?

Ohio is one of 45 states where there is no rent control, meaning that there is no limit to how much a landlord can charge or raise the rent by. This is an advantage for landlords in Cleveland as it allows them to respond to market trends and the current cost of doing business. Landlords therefore have the flexibility to make informed decisions that can help them maximize their profits. 

In order to maintain a competitive edge in Cleveland’s rental market, it is important to pay attention to broader trends such as average rent prices in your area and demand for housing. It is also important to ensure that your properties are well maintained and attractive to the sort of tenants who are willing to pay what you are charging. Offering units at a price that is appropriate for the current market and providing a high quality service will help you avoid vacancies and disruptions to your revenue stream.

Working with a local property management company can keep you in the loop regarding market conditions and ensure that your property is well maintained.

When Can You Increase Rent?

Rent increases are generally allowed when a lease agreement is up for renewal. In this case, you must provide written notice to your tenant before their lease is set to expire. Ohio law requires a minimum 30-day notice, but it is advisable to provide a longer notice period to allow tenants sufficient time to plan for the increase. A 30-day notice period is required to increase the rent on month-to-month rentals as well.

How Do You Increase Rent?

Increasing rent involves several steps to ensure compliance and maintain a positive landlord-tenant relationship. Firstly, evaluate market rates in your area to determine appropriate rent levels. This analysis will help you justify the increase and ensure it aligns with prevailing rates.

Once you have decided on the new rent amount, it is important to communicate clearly with your tenant. Draft a formal rent increase letter that includes the current rent, the date the increase will take effect, and the new rent amount. Additionally, explain the reasons for the increase, such as rising property taxes or maintenance costs.

Send the rent increase letter to your tenant via certified mail or in person, ensuring you have proof of delivery or receipt. This documentation will be crucial if any disputes arise in the future.

Giving Notice of Rent Increase

Providing notice of a rent increase is not only required by law but also demonstrates respect for your tenant's rights. As mentioned earlier, a minimum 30-day notice is necessary in Ohio, but consider providing more time for tenants to adjust their budgets and make informed decisions regarding their housing.

In addition to written notice, it is often helpful to discuss the increase with your tenant in person or over the phone. Being available to answer questions or address concerns can help maintain a positive landlord-tenant relationship and ensure a smooth transition to the new rental rate.

Final Thoughts: Rent Increase Laws in Cleveland

Rent increases are a natural part of managing rental properties, but they must be done in compliance with local laws and regulations. Remember, open and transparent communication with your tenants is vital. By explaining the reasons for the increase and providing sufficient notice, you can foster a positive landlord-tenant relationship and ensure a smoother transition for both parties.

Looking for a property management company in Cleveland to assist with rent collection, market insight, and more? Reach out to our local team to learn about the services that we can provide to your rental business!