As one of the fastest-growing western states in the US, Arizona has a strong real estate market. Landlords can cover the maintenance costs of their properties and make a profit each time tenants pay rent.
However, Arizona landlord and tenant rights laws are different from other states.
Do you want to make sure your rental is successful? Read on and find more information about how much you can raise the rent and other regulations worth considering throughout the lease term.
What Is a Rent Increase Notice?
Essentially, a rent increase notice is a letter that landlords should provide to tenants, informing them that the monthly rent will be increased.
Arizona landlords must serve the notice to announce that there will be changes in the rent charges. Tenants who have stayed in the property and paid rent for a month-to-month tenancy can either reject or accept this increase after receiving the letter.
Each state has imposed regulations on how much notice landlords must provide or when they could raise the rent. However, Arizona's laws are different.
This state doesn't have a rent control policy that limits increases in rent charges. Additionally, Arizona state laws take precedence over local governments' regulations.
In other words, Arizona cities cannot control rent. As a result, this state has become a top choice for real estate investments.
How Much Can a Landlord Raise Rent?
As mentioned, since there's no controlled rent in Arizona, property owners can raise the rent by any amount. Moreover, they can do it for any reason.
The state hasn't defined a legal cap for rent increases. However, landlords are somewhat limited as to when they can raise the amount and should give proper notice.
When Should You Send a Rent Increase Notice to a Tenant?
Under Arizona law, landlords must always give proper notice if they plan to increase rent. Overall, property owners should consider this:
- A 30-day notice is required for a month-to-month lease
- A 10-day notice is required for a week-to-week lease
Also, if there's a one-year rental agreement, landlords must wait until the lease ends to raise the rent. Although there is no specific period to serve notices in these cases, property owners or managers must always act in good faith.
However, increases are prohibited during the lease fix term unless otherwise specified in the original contract.
In addition, property owners or managers shouldn't raise the rent for certain discriminatory or retaliatory reasons.
According to the Federal Fair Housing Act, tenants cannot be discriminated against for the following:
- Gender or gender identity
- Sexual orientation
- Family status
- Nationality or origin
Moreover, in this state, landlords cannot increase the rent in retaliation. These hikes may be considered retaliatory if they occur within six months after the following actions:
- Tenants complain about property owners' failure to uphold their responsibilities
- Tenants join or organize a union or group with other tenants
- Tenants file a complaint with an agency to enforce the wage-price stabilization act
- Tenants file a complaint with a regulator or authority agency over the property's safety
What Is the Best Way to Send a Rent Increase Notice?
If you want to send a rent increase notice to your tenants, there are two legal methods you can consider: in-person deliveries and mail deliveries.
Landlords who choose mail delivery must make sure they use certified mail in order to obtain proof that tenants received the notice within the time frame established by state laws.
When serving the notice in person, property owners can hand it directly to tenants or leave them at the unit's front door.
What If Tenants Don't Agree to the Notice?
Tenants can reject the rent increase if they don't agree with the price hike. The same is true if they believe that landlords' actions are discriminatory or retaliatory.
If this happens, they can send a proper notice to inform you that they won't renew the lease or challenge the rent increase.
Understanding Basic Rent Control Laws in Arizona
As mentioned, Arizona has not imposed statewide rent control laws limiting rent amounts.
In addition, the state prohibits cities or local governments from establishing their regulations to control rents.
Can Landlords Evict Tenants If They Don't Agree to the Notice and Stay in the Unit?
Landlords can also evict tenants if they refuse to pay rent. However, they must consider local eviction laws and send a written notice or add a clause to the rental increase notice informing that the rental agreement will be terminated.
Arizona also states that landlords can make adjustments to the lease rules and regulations set forth in the contract but without making substantial modifications to the tenancy.
When there are significant changes in the rent amount or late fees, both parties can agree to a new tenancy. Landlords must serve a 30-day notice informing lessees that the lease agreement won't be renewed.
Downland the Rent Increase Notice You Need Here!
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Do you think customizing your own rent increase notice is a better option? You can also use this paid service! There's a comprehensive template for each state, including Arizona.
How Often Can Landlords Make Rental Increases in Arizona?
In Arizona, property owners can increase the rent as often as they want during the rental period, as long as they give proper notice and are not motivated by discrimination or retaliatory reasons.
Are Rent Increase Notices Difficult to Draft?
Overall, rent increase notices are easy to draft and understand. Most include the following information:
- Landlord's name
- Tenant's name
- Property address
- Current rent amount
- Increased rent amount
- Date the rent increase is set to take place
- Contact details tenants can use to inform landlords about their decisions
- When the lease will be terminated if tenants don't accept the rent increase
Can Landlords in Arizona Charge Late Fees?
In Arizona, rent is legally due on the date that both parties agreed to and set in the original lease. If tenants don't pay rent on time, landlords can charge late fees as long as they are reasonable and specified in a written rental agreement.