As prices continue to rise, it is no wonder that the costs to rent an apartment, house, or commercial property increase as well. Rising taxes, maintenance fees, and other costs may require a landlord to raise the rent. If you are a landlord, you need to be able to increase the rent that you receive in order to cover your associated expenses. At the same time, tenants must be able to afford their rent payments. Tenants want to have ample notice when the rent is going to go up.
Lease Agreements
A lease agreement is a contract between a landlord and a tenant. It includes various terms that provide guidance for both landlords and tenants. Importantly, the lease sets the amount of rent for the space for the period of tenancy. A lease protects both landlords and tenants. A tenant is obligated to pay rent for the entire rental period. In Wisconsin, the law is clear. Once the lease is signed, it is in effect, and a landlord cannot increase the rent during the rental period. A landlord must inform a tenant of a rent increase before the lease renews.
Month-to-Month Tenancies
Month-to-month tenancies occur when there is no written lease. A month-to-month lease expires at the end of each month. Either party may terminate the tenancy as long as they give adequate notice. For these types of tenancies, the landlord must provide at least 28 days’ written notice of rent increase. A written lease may turn into a month-to-month arrangement if the lease is not formally renewed and the landlord continues to accept rent payments.
No Cap on Rent Increases
Wisconsin does not have a law that limits the amount a landlord may increase rent, except in cases of restricted-income housing. This applies to private landlords in the state. A landlord may therefore impose an increase in rent as long as they do so lawfully. The landlord is required to provide proper written notice of a rent increase according to the type of rental agreement in place. However, the landlord may increase the rent as they see necessary and may want to ensure that the rent is at the current market rental rate for similar properties in the area.
Rent Increases
Landlords in Wisconsin may choose to increase the rent at their property and are not bound to any specific increase limits. However, landlords must always follow the law when imposing rent increases. The Fair Housing Act ensures that tenants are not discriminated against. It prohibits discrimination based on race, color, national origin, religion, sex, disability, or familial status. Landlords need to impose rent increases in a fair manner. Landlords should always provide rent increases in writing and state the date that the new rent rate begins. Rental agreements are often the best way to protect your rights and the rights of tenants.
If you have questions or concerns about your legal options, contact us today at (608) 784-8310 or online to schedule a consultation.