What’s the allowed percentage rate that can be raised per year under a lease or rental arrangement? That is dictated by the lease itself. Usually you see in a commercial lease that the lease can be renewed. However, it will set forth the parameters. It will be the cost of living, could be one of the parameters or a certain percentage. I always like to have it definitive, as far as that’s concerned. If the lease expires or you’re there on a month to month basis, then there is no limit as to what they can raise your rent. Once your lease expires or if you’re there on a month to month basis, they can raise it as high as, the landlord can raise it as much as he wants. There’s no limitation. Your only remedy is, is to find another location or move to someplace that you can afford.
It’s important that you enter into a lease. If you wish to have an option to renew, that it sets forth the amount that the rent would increase for the renewal term and set forth the number of renewal terms that you want. In answer to the question is, is the lease that you sign will dictate how much they can increase your rent. If your lease is expired or you don’t have one, there’s no limitation on the amount that the landlord can raise the rent. If you have any other landlord tenant problems, well give me a call at 727-847-2288.