Renting out your Columbus property can be a lucrative investment. But in order to maintain your yields, you’ll probably need to raise rent every once in a while.
That’s why landlords need to be aware of the local rent increase laws in their state or city. In this article, we’ll explore the sometimes-complicated but all-important world of rent increase laws in Columbus, Ohio.
Let’s dive in!
How Much Can You Increase Rent?
When considering a rent increase, landlords must be aware of the limits set by the law. In Columbus, Ohio, there are no specific limits on the amount by which you can increase the rent (there is no rent control in Ohio). This means that landlords have the freedom to set the new rental rate as long as it is considered reasonable and does not violate any other laws or rental agreements. However, increasing the rent too much could drive residents away or make it difficult to attract new occupants.
When deciding on a rent increase in Columbus, landlords should consider factors such as the overall economy, the demand for rental properties, and the availability of similar units in the area. Conducting thorough market research and analyzing comparable rental rates can help in setting a competitive and fair rental price.
Landlords should also consider the condition of the property, including any recent improvements or renovations. If significant upgrades have been done, such as installing new appliances, renovating the bathroom, or adding amenities like a fitness center or a communal lounge, this may justify a higher rent increase.
Communication with residents is key when it comes to rent increases, and landlords need to be prepared for potential negotiations with residents. Some residents may express concerns about the rent increase, especially if it is significant. In such cases, landlords can consider offering incentives or compromises, such as extending the lease term or providing additional services or amenities, to address resident concerns and maintain a positive landlord-resident relationship.
Landlords should provide ample notice to residents about the upcoming change in rent, typically 30 to 60 days in advance, depending on local laws. This gives residents time to adjust their budget and make informed decisions about their housing situation.
Lastly, landlords should ensure that any rent increase is documented properly. This includes updating the rental agreement or lease to reflect the new rental rate and providing residents with a written notice of the change. Keeping accurate records of all communication and documentation related to the rent increase is essential for legal and financial purposes.
When Can You Increase Rent?
Rent increases in Columbus, Ohio can only occur at specific times. According to the Ohio Landlord-resident Law, landlords must provide residents with a minimum of 30 days' notice before implementing a rent increase. It is crucial to provide this notice in writing and ensure that it includes the effective date of the rent increase, the new rental rate, and any other relevant information or terms.
Landlords must maintain open lines of communication with their residents throughout the rent increase process. They should also consider the impact it may have on their residents. A sudden and substantial rent increase can place a financial burden on residents, potentially leading to financial hardship or even eviction. Landlords should approach rent increases with fairness and sensitivity, taking into account the individual circumstances of each resident. This includes addressing any concerns or questions the residents may have and providing them with an opportunity to discuss the proposed rent increase.
How Do You Increase Rent?
After deciding on the rent increase amount, based on the local rental market and the fair market value for the property, the landlord will draft a formal rent increase notice that clearly explains the reasons for the increase and any changes or improvements made to the property that justify the higher rental rate.
The rent increase notice should be delivered to residents in writing. You can choose to deliver it personally, send it by certified mail, or use another method that provides proof of delivery. Keep a copy of the notice for your records.
Note: A Columbus property management company can help with setting rents, raising rents, and more.
Giving Notice of Rent Increase
As mentioned earlier, landlords in Columbus, Ohio are required to provide residents with a minimum of 30 days' notice before implementing a rent increase. The landlord may not increase rent during the term of the lease. It is crucial to adhere to this requirement to avoid potential legal issues or disputes with residents.
When giving notice, ensure that it is delivered in a way that allows for proof of delivery. This can protect you against any claims by the resident that they did not receive proper notice. Keeping a record of the notice and any communication related to the rent increase is also helpful for future reference.
Final Thoughts: Rent Increase Laws in Columbus, Ohio
While there are no rent increase laws in Columbus, Ohio, landlords who want to maintain a successful rental business must adhere to Ohio’s legal code regarding landlord-resident relationships. Moreover, when planning a rent increase, it is crucial to consider the current rental market conditions and approach the process with transparency and open communication.
By providing residents with proper notice, justifying the increase, and maintaining a positive landlord-resident relationship, you can navigate the rent increase process in a way that is fair and compliant with the law.
Looking for a professional property management company to help with setting and raising rents in Columbus? Contact our team today!
