Being a property owner means you get to make the calls about what you do with your rentals. But that doesn't mean you can do absolutely anything when it comes to your properties.
Case and point, Utah has rules about how rent can be increased, and they vary depending on your lease agreement.
Keep reading this quick guide to learn all you need to know about rent raise laws in Salt Lake City and all of Utah.
Rent Raise Laws in Utah
The good news for landlords is there are no rules on how much or how often rents can be raised in Utah. You just need to provide written notice.
So, if you have a property with below market value rents, you can get them up to what they should be quickly.
Provide your tenants with a rent-raising letter that outlines the rental increase. The notice needs to be delivered to your tenants at least 15 days before the next rent payment is due unless otherwise specified in the rental agreement.
If you have a month-to-month lease with your tenants, you can raise the rent any month, as long as you provide written notice 15 days before when the next rent payment is due.
Some leases allow for increased rental fees, like property taxes or maintenance fees. If this is written into your rental agreement, you may be able to raise rent before your current lease agreement expires.
Can You Raise Rents Without a Written Agreement?
If there is no written agreement regarding rent in place, that means that your tenant is on a month-to-month lease.
Landlords can raise rents without having a written agreement, but landlord laws still require that you provide a written notice at least 15 calendar days before the next rent payment is due.
If you give the notice less than 15 days before the rent is due then the rent increase won't be considered effective until an additional month has passed.
What Happens If I Raise Rent and the Tenants Don't Pay the Increase?
If you raise rents legally and with the proper notice and the tenants fail to pay the new rent amount, then you can serve them with a 3-day or 5-day notice to pay or vacate. They are legally required to pay the increase and all late fees incurred as determined by the written agreements you have.
If they do not do this within the 3 or 5-day period provided, then you can start the eviction process. This is a worst-case scenario as evictions are usually messy and emotional on both sides of the fence.
Know the Rent Raise Laws in Salt Lake City
Now you know, rent raise laws allow you to increase rent whether you have a rental agreement or not. However, it is best to have a written rental agreement in place and raise rents according to current market value.
A great idea is to hire a rental management company to help with the process. Contact Utah Property Management Solutions today to see how we can help!
