Have you heard that Pittsburgh is in the top five American cities with the highest increases in rent, according to CNBC?
Managing rent hikes can be challenging for both tenants and landlords. In Pittsburgh, rental increases follow specific rules.
Understanding these rules is important to avoid disputes. Read on for our thorough guide on rental increases.
Know the Rental Agreement
The rental agreement is the foundation of a lease. It includes details about rent, terms, and conditions. To start, check the rental agreement for clauses about rent increases.
Some agreements specify when and how rents may increase. For example, it may state that rent can only increase once a year.
Rental agreement changes usually require written notice. Make sure to review these details carefully.
Tenant Rights on Rent Increases
As a tenant in Pittsburgh, you have rights regarding rent hikes. Pennsylvania law does not limit how much landlords can increase rent. However, landlords must follow proper procedures by giving a written notice of the increase before the lease ends.
For monthly leases, landlords typically need to give 30 days' notice. If you have a yearly lease, the notice period may be longer.
Understanding Market Rates
Landlords often adjust rent based on market rates. A wise practice is to compare your property to other nearby rentals. Websites like Zillow or Craigslist can provide current rental data.
Calculating the Rental Increases
To calculate the rent increase, follow these steps. Find the current rent so you can start with the monthly rent amount.
Determine the percentage increase. Landlords often use a percentage to decide the increase. For example, a 5% increase on $1,000 rent means an additional $50.
Add the increase to your current rent. In this example, $1,000 + $50 = $1,050. Knowing this calculation helps you verify if the new rent amount is accurate.
Discussing Rent Hikes with Your Tenant
Tenants are never eager about increases. Use these landlord negotiation tips to discuss:
- Be polite and professional: Approach the tenant calmly
- Provide market data: Show examples of similar properties with similar rents
- Offer a compromise: Suggest a smaller increase or extended lease term because negotiation can often lead to a better outcome for both parties
Managing Rent Hikes as a Tenant
A rent hike can strain your budget. Plan ahead to manage these changes:
- Create a budget: Identify all of your expenses and sources of income, and tweak your spending habits if necessary
- Consider moving: If the increase is too high, explore other rental options
- Seek assistance: Local organizations may offer help for housing costs
Landlord Responsibilities
Landlords must follow the law when increasing rent. Providing proper notice and maintaining the property are key responsibilities. Tenants can report violations to local housing authorities if landlords fail to meet these obligations.
Clear communication can help landlords and tenants avoid conflicts.
These Rent Increase Tips Can Help Landlords and Tenants
Calculating rental increases in Pittsburgh involves understanding your lease and local market trends. Landlords should always provide proper notice and consider tenant concerns.
Has running your own Pittsburgh rental property business been exhausting? Contact DeSantis Property Management to see how our property management services can take everything off your plate. We've been helping other Pittsburgh property managers like you since 2000.
