Noah Patel
The COVID-19 pandemic caused financial hardship for many tenants, leading to questions about the legality of landlords increasing rent during this time. Generally, the rules for a rent increase are dictated by the rental agreement. For tenants with a fixed-term lease, the rent amount is locked in unless the lease contains a clause permitting an increase. For month-to-month tenancies, landlords can raise the rent provided they give proper written notice, typically 30 to 60 days in advance. During the pandemic, temporary bans and local ordinances were implemented, prohibiting or limiting rent increases, but these protections have now mostly expired. While some landlords showed flexibility, others raised rents during the pandemic, and many more plan to in the future.
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What You'll Learn
Landlord-tenant laws during the pandemic
The COVID-19 pandemic has caused widespread economic uncertainty, leaving tenants concerned about housing stability and landlords anxious about their businesses. This has resulted in a complex landscape of rules and protections for renters and landlords.
The rules for a rent increase are dictated by the rental agreement. For tenants with a fixed-term lease, the rent amount is locked in for the duration of the agreement. A landlord cannot raise the rent during this period unless the lease contains a specific clause permitting an increase. However, landlords in California are subject to the Tenant Protection Act, which caps rent increases at 10% or 5% plus the percentage change in the cost of living, whichever is higher. During the pandemic, this was further limited to a 4% increase.
The situation is different for individuals in a month-to-month tenancy. In these arrangements, landlords generally have the right to raise the rent, provided they give proper written notice. This notice must be delivered a certain number of days before the increase takes effect, commonly 30 or 60 days, depending on the location.
It is important to review the lease agreement to understand the baseline terms regarding rent and research the emergency orders active when the notice was issued, including any local or state moratoriums and CARES Act protections for "covered properties". If a tenant believes their landlord has raised the rent improperly, they should communicate with the landlord in writing, questioning the increase and citing the specific law violated. Keeping a detailed record of all communications is essential for any potential dispute.
In addition to rent increases, there have been moratoriums on evictions during the pandemic. While a landlord can still demand rent, they cannot evict a tenant or file a lawsuit for non-payment during the moratorium period. After the moratorium ends, the landlord must give 30 days' notice before initiating an eviction and is prohibited from charging late fees, interest, or other fees related to late payment during the moratorium.
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Rental agreements and lease clauses
Firstly, it is crucial to examine the type of tenancy agreement in place. For tenants with a fixed-term lease, the rent amount is typically locked in for the duration of the agreement. Landlords cannot unilaterally increase rent during this period unless the lease contains an explicit clause permitting rent increases. On the other hand, month-to-month tenancies offer landlords more flexibility to raise rent, provided they give proper written notice within the specified timeframe, often 30 to 60 days in advance.
The COVID-19 pandemic has prompted the emergence of "pandemic clauses" in commercial and retail lease agreements. These clauses, also known as force majeure clauses, are designed to address rental payments during a pandemic or when restrictive measures are implemented. They may include provisions for rent suspension, reduction, or adjustments based on a percentage of monthly sales instead of a flat rate. While some landlords are open to negotiating pandemic clauses, others express concerns about added uncertainty and potential legal implications.
The legality of rent increases during the pandemic also depends on local and state regulations. Temporary bans and moratoriums were established to protect tenants from rent hikes, but these protections vary significantly across jurisdictions. For example, a city with a strict moratorium may prohibit any rent increase, while a neighbouring town without such a rule leaves tenants unprotected. Additionally, federal protections, such as the CARES Act, provided temporary relief for tenants in "covered properties," including rental units with federally backed mortgages.
In conclusion, rental agreements and lease clauses are fundamental in understanding the rights and limitations of landlords and tenants regarding rent increases during the pandemic. While fixed-term leases generally lock in the rent amount, month-to-month tenancies allow for more flexibility with proper notice. The introduction of pandemic clauses in commercial and retail leases offers innovative solutions to address rental payments during these challenging times. However, local, state, and federal regulations also play a crucial role in protecting tenants from excessive rent hikes.
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Moratoriums and rent increase bans
The COVID-19 pandemic caused widespread economic uncertainty, leaving tenants concerned about housing stability. This led to a complex landscape of rules and protections for renters across the country. In response, many local and state governments implemented emergency rent increase moratoriums.
These moratoriums were temporary bans that prohibited landlords from raising rents for a specified period. These protections were not uniform and varied significantly from one jurisdiction to another. For example, a tenant living in a city with a strict moratorium might have been fully protected from any rent hike, while a person in a neighbouring town without such a rule would not have the same safeguard. These local ordinances often defined what constituted a rent increase, sometimes including surcharges for utilities or parking. The expiration dates for these moratoriums also differed, with some ending much sooner than others.
The federal government also provided temporary relief through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These protections applied only to tenants in “covered properties,” which included rental units in buildings with federally backed mortgages, such as those insured by the FHA or held by Fannie Mae and Freddie Mac. For the duration of the act’s initial 120-day eviction moratorium, landlords of these properties were barred from initiating evictions for non-payment of rent. They were also prohibited from charging any late fees or other penalties related to the non-payment of rent during that time.
Today, the vast majority of emergency rent increase moratoriums established during the pandemic have expired, meaning temporary bans on rent hikes are no longer in effect in most areas. However, one federal protection from the CARES Act remains: landlords must still provide a 30-day notice to vacate for non-payment of rent.
The rules for a rent increase are dictated by the rental agreement. For tenants with a fixed-term lease, the rent amount is locked in for the duration of the agreement, unless the lease contains a specific clause permitting an increase. The situation is different for individuals in a month-to-month tenancy, where landlords can raise the rent provided they give proper written notice, typically 30 to 60 days in advance.
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Tenant protections and rent control
During the pandemic, the federal government in the US implemented tenant protections, including the Centers for Disease Control and Prevention (CDC) eviction moratorium, which prevented 1.55 million households from losing their homes. However, these protections were not uniform and varied across jurisdictions. For example, a tenant in a city with a strict moratorium might have been shielded from any rent increase, while a person in a neighbouring town without such a rule would not have been protected.
In Los Angeles, tenants who experienced financial stress due to COVID-19 were protected from eviction under the City's existing tenant pandemic ordinance. The City's ordinance offered greater protection for tenants than the State's new law (AB 3088 - The Tenant Relief Act of 2020) or the CDC's order, which only prohibited evictions until 31 December 2020. The CDC's order also had income requirements and required tenants to sign a declaration that eviction would force them into homelessness or shared living accommodations.
In Oregon, tenants have urged legislators to restore pandemic protections from eviction, as evictions have skyrocketed since protections for tenants expired. Before the protections expired, Oregon had a moratorium on evictions for non-payment of rent from April 2020 until June 2021, which was then replaced by a safe harbour law.
The rules for a rent increase are dictated by the rental agreement. For tenants with a fixed-term lease, the rent amount is locked in for the duration of the agreement, unless the lease contains a specific clause allowing an increase. In contrast, landlords with month-to-month tenancy arrangements generally have the right to raise the rent, provided they give proper written notice a certain number of days in advance, usually 30 to 60 days.
In California, the Tenant Protection Act caps rent increases for most tenants. While landlords cannot raise rent by more than 10% in total or 5% plus the percentage change in the cost of living, during the pandemic, this increase was capped at 4%.
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Landlord flexibility and rent increases
During the pandemic, landlords were permitted to raise rents, but the amount of the increase was limited. The Tenant Protection Act, for example, capped rent increases in California at 4%. Local ordinances also played a role, with some cities imposing stricter moratoriums than others. These moratoriums defined what constituted a rent increase, sometimes including surcharges for utilities or parking.
The rules for rent increases are generally dictated by the rental agreement. For tenants with a fixed-term lease, the rent amount is locked in for the duration of the agreement unless the lease contains a specific clause permitting an increase. For month-to-month tenancies, landlords typically have the right to raise rents, provided they give proper written notice, usually 30 to 60 days in advance.
During the pandemic, many landlords demonstrated flexibility with rental payments, recognising the financial difficulties faced by their tenants. A survey of UK landlords found that 65% allowed flexibility on rental payments during the pandemic. However, the same survey indicated that 55% of landlords intended to increase rents in the following 12 months. Nonetheless, the majority (80%) expressed a preference for receiving lower rent from a better or more long-term tenant.
While the pandemic caused widespread economic uncertainty and concerns about housing stability, the rules and protections for renters varied significantly across different jurisdictions. This created a complex landscape, with tenants in some areas benefiting from temporary bans on rent increases while others did not have the same safeguards.
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Frequently asked questions
Yes, landlords can raise rent during the pandemic if the lease agreement permits it. However, there may be local or state laws that place temporary bans or restrictions on rent increases during the pandemic. These laws vary by location, so it is important to review the specific laws in your area.
If you believe your landlord has raised your rent during the pandemic in violation of the law, you should first review your lease agreement to understand the terms related to rent increases. Then, research the emergency orders and moratoriums that were in place when the notice was issued. After gathering this information, you should communicate with your landlord in writing, questioning the increase and citing the specific law that was violated. Keep a detailed record of all communications for any potential dispute.
Yes, landlords may choose to offer flexibility on rental payments or even lower rents to secure reliable, long-term tenants. During the pandemic, 65% of landlords allowed flexibility on rental payments to help tenants experiencing financial difficulties. Landlords may also consider other options, such as reducing operating costs or seeking government assistance, to avoid placing the burden of increased costs on tenants.
