Texas Rent Increase Laws: How Much Can You Raise The Rent in Texas?

Contents

DISCLAIMER

This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.

Overview

DEPOSIT

RENT CONTROL

NOTICE OF ENTRY LAWS

RE-KEYING LAWS

RENTAL AGREEMENT

LATE FEES & GRACE PERIODS

SMOKING LAWS

PET LAWS

Rent increases are sometimes unavoidable, and landlords often find themselves in situations where raising rents may be necessary for their financial health. 

Typically, landlords adjust rents to reflect market conditions, combat inflation, cover rising operating costs, and respond to increasing property values. However, it is crucial for landlords to adhere to Texas rent increase laws 2024 when implementing rent hikes to ensure that these increases are legal.

It's important to note that there is no statewide cap on max rent increase in Texas upon lease renewal. However, Texas rent increase laws do permit local municipalities to enact rent control ordinances under specific circumstances.

This article aims to answer the question, “How much can a landlord raise rent in Texas?” We will also explore the relevant laws governing rent increases in the Lone Star State.

Read more: When Should a Landlord Increase the Rent?

How Much Can You Raise Rent In Texas?

There's no statute that covers a maximum rent increase in Texas. So the question of, “How much can a landlord raise the rent in Texas?” can be answered as unlimited. The absence of a Texas rent increase limit gives landlords significant flexibility to increase rent as much as they deem appropriate.

However, if you have a fixed-term lease in place, any rent increase can only take effect once the current lease expires. For month-to-month rent increases in Texas, landlords can adjust the rent at any time by providing tenants with 30 days' written notice. 

While there's no specific Texas rent increase limit, certain exceptions may apply. For instance, municipalities are allowed to determine how much should rent increase per year under specific circumstances. These circumstances are outlined in Tex. Loc. Gov't Code § 214.902, such as during a declared disaster or emergency.

These provisions allow local governments to intervene temporarily in response to crises like natural disasters or public health emergencies.

Read more: How Much Can A Landlord Raise The Rent?

How To Raise The Rent In Texas

While there's no limit on how much you can raise rent in Texas, landlords still have to ensure rent hikes are in compliance with state laws. 

Below is a step-by-step guide to raising rent in Texas.

Step 1: Set Your New Rent Price

When deciding what your new rent price would be, it's beneficial to evaluate the local rental market and current trends to set a competitive rate. You can research median prices and consider factors like property location, such as proximity to universities, which may influence what tenants can afford. 

Additionally, some online resources like Rentometer or Zillow Rent Estimate can help you perform a comprehensive market analysis of rentals in Texas. 

Step 2: Draft the Rent Increase Notice

The next step is to draft a formal notice of the rent increase. While not legally required, providing at least a 30-day notice is standard practice for month-to-month rent increases in Texas. This will also help you maintain a good relationship with your tenants.

Step 3: Communicate the Increase

Communicate the increase tactfully, ensuring tenants have adequate time to adjust their budgets. While there are no specifications under Texas rent increase laws on how to give rent increase notice to tenants, we recommend you give a written notification to prevent disputes and clarify details about the increase.

Finally, it's important to stay informed on Texas rent increase laws 2024 to ensure compliance and understand tenant rights regarding potential disputes over increases.

Read more: How to Increase the Rent [+Free Rent Increase Letter]


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Notice Periods for Rent Increases in Texas [Free Template]

Unlike other states, Texas doesn't have a mandated notice period for rent increases. However, landlords are generally expected to act in good faith, meaning they should provide tenants with adequate notice before raising the rent, even though the law does not specify a required timeframe.

Typically, landlords offer at least 30 days written notice before implementing a rent increase. This allows tenants sufficient time to consider their options and make necessary arrangements if they choose not to accept the new rate. It’s important for both parties to communicate openly to maintain a positive rental relationship.

Read more: How to Write a Friendly Landlord Rent Increase Letter

Mobile Home Tenancies

In Texas, the regulations governing mobile home rent increases are primarily outlined in Tex. Prop. Code Ann. § 94. A key provision of this chapter mandates that landlords must provide written notice for any rent increase.

For tenants on month-to-month agreements, landlords are required to give at least 30 days' notice before a rent hike takes effect. This notice period is essential as it allows tenants time to adjust their finances or explore other housing options. 

For those with fixed-term leases, any rent increase cannot be implemented until the lease term concludes, unless specified otherwise in the lease.

Additionally, Texas law includes provisions for rent stabilization during emergencies, such as disasters or pandemics. Per Tex. Prop. Code Ann. § 214.902, municipalities have the authority to enact rent control measures in these extraordinary situations. 

Tenants living in mobile home parks also enjoy specific rights regarding rent increases. If a tenant believes a rent increase is unjust—such as being implemented without proper notice or in a discriminatory manner—they can seek legal recourse through small claims courts or contact tenant advocacy organizations for assistance. 

Fair Housing Act Protections

Tenants in Texas have certain protections under the state and federal Fair Housing Act that are applicable during rent increases. A rent increase can be deemed illegal in three specific situations: 

  • if it occurs before the current lease expires, 
  • if it is applied discriminatorily, or 
  • if it acts as retaliation against a tenant. 

As a landlord, you must comply with the Texas Fair Housing Act, which prohibits discrimination based on protected classes. These classes include race, color, national origin, religion, disability, age, sex, genetic information, and citizenship status.

Retaliation is also strictly forbidden; landlords cannot raise rent as punishment for tenants exercising their legal rights. It's important to note that tenants have the right to voice concerns about unsafe living conditions to government agencies like health inspectors or fire departments and join tenant unions. 

Additionally, they are entitled to withhold rent for uninhabitable units or deduct repair costs if landlords fail to respond to maintenance requests. 

Conclusion: Rent Increases in Texas

Following rent increase laws and avoiding discriminatory practices are crucial for maintaining legal compliance and protecting tenant rights. Noncompliance can lead to legal disputes, financial penalties, and damage to a landlord's reputation.

To effectively manage rent collection and increases, we recommend using a property management system like Landlord Studio. This platform streamlines rent collection, automates notices for increases, and helps landlords stay organized and compliant with local laws.

Texas Landlord Tenant Laws

Texas Rent Increase FAQs

What are the rules for late fees on rent in Texas?

Landlords can impose reasonable late fees if specified in the lease and compliant with state guidelines. These fees must be documented and cannot be excessive.

How can tenants learn about their rights regarding rent increases?

Tenants should examine their lease agreements and local laws. Resources like the Texas Landlord Tenant Laws page provide detailed insights into tenant rights.

What notice is needed for rent increases in Texas?

Typically, landlords must give a 30-day written notice before increasing rent, applicable to month-to-month leases.

Are there limits on how much rent can be increased in Texas?

There are no statewide limits on rent increases; landlords can raise rents as they see fit, subject to lease terms and local ordinances.

What processes must landlords follow for raising rent?

Landlords should provide written notice and adhere to lease agreements, ensuring compliance with any applicable local regulations.

How have Texas rental laws changed in 2024?

As of 2024, Texas continues to allow landlords considerable flexibility with rent increases, but it's crucial to check for any local ordinance changes.