How it is worked out
The new rent is the current rent plus the percentage: a $1,500 rent raised by 5% becomes $1,575. The other way round, the percentage is the difference divided by the current rent. The yearly figure is the monthly difference times twelve.
For owners: before you raise the rent
- Read the lease. During a fixed-term lease the rent usually stays as signed, unless the lease itself provides for an increase and says how it is calculated.
- Check the local rules. Some states, cities and countries cap yearly increases for many homes, and most require written notice before an increase takes effect. The cap and the notice period depend on where the place is: check them before you send the letter, and enter the cap above.
- Look at the market. A rent above what comparable places ask empties the place, and a month without a tenant costs more than most increases bring in. Compare with the places listed in Gastonia.
For tenants: if your rent is going up
Check that the increase is allowed by your lease, that you were given the notice it requires, and that it respects any cap that applies. Then compare: if similar places in Gastonia ask less, that is an argument, and so is offering a longer lease in exchange for a smaller increase.