In Texas, tenants should be aware that there are no statewide laws that limit how much a landlord can raise the rent. Rent control can only be enacted in certain cities during emergencies. Landlords have considerable flexibility in determining rent prices, but they must adhere to the terms stipulated in the lease agreement and follow specific legal procedures before increasing rent.
Key points for tenants:
- Lease Agreements: Rent cannot be raised until the lease term expires for fixed-term leases. For month-to-month leases, landlords can raise rent with proper notice.
- Notice Requirements: While Texas law doesn’t specify a notice period, it is common practice for landlords to provide at least a 30-day written notice before increasing rent. If a landlord plans to increase rent by 10% or more within a year, they are required to provide a 75-day written notice.
- No Rent Control: Texas law prohibits cities from enacting rent control policies, meaning there are no rent control measures anywhere in the state.
- Reasonable Rent Increase: A 5% to 10% yearly increase is generally considered reasonable, though this can vary based on market conditions, property improvements, and other factors.
- Retaliation: A landlord cannot raise the rent in retaliation against the tenant for taking certain actions according to Section 92.331 of the Texas Property Code. These actions include asking the landlord to make necessary repairs, making a complaint about a building or housing code violation or utility problem to the appropriate government entity, or establishing, attempting to establish, or participating in a tenant organization.
- Negotiation: Tenants can negotiate or dispute an increase, but success depends on the lease terms and the landlord’s flexibility. If no agreement is reached, the tenant may need to consider moving out.
- Rent Increases During COVID-19: There are no local, state, or federal orders that prevent a landlord from increasing rent during the COVID-19 pandemic.
- Exceptions: Municipalities are permitted to enact rent control laws under specific circumstances, as stated in Section 214.902 of the state’s Property Code. The statute limits this option to situations where a housing crisis has resulted from a disaster and the ordinance must also have the governor’s approval.
Understanding these rules helps tenants and landlords manage their legal obligations effectively.
Source:
- https://www.steadily.com/blog/rent-increase-laws-regulations-dallas-tx
- https://www.homeriver.com/blog/what-is-the-maximum-rent-increase-allowed-in-texas
- https://www.doorloop.com/laws/texas-rent-control-laws
- https://www.sll.texas.gov/faqs/rent-increase/
