Can Landlords Raise Rent? What You Need to Know
- 3 days ago
- 6 min read
Overview
Raising rent is a normal part of owning and operating a rental property. Whether it’s to keep up with rising taxes, maintenance costs, or market demand, landlords have the legal right to adjust rent—but there are rules to follow.
In this article, we’ll walk through:
When rent increases are allowed under Michigan law
What notice is required
How much a landlord can raise rent
The role of rent control, and why some states avoid it
State-specific insights for landlords and tenants in Michigan
Can a Landlord Raise Rent?
Yes, landlords can raise rent—as long as they follow the lease terms and applicable state laws. In states like Michigan, where there are no statewide rent control restrictions, property owners have more flexibility and freedom to adjust rental rates based on market value, ownership costs, and the condition and true value of the property.
This flexibility is important. In states with rent control policies, this often leads to deferred maintenance, reduced investment, limited housing supply, and ultimately higher costs for tenants. Michigan’s market-driven approach ensures that landlords can continue maintaining quality housing, while renters benefit from competitive pricing and well-managed properties.
A lease is a mutual agreement with a defined end date—not a permanent entitlement. Once a lease term expires, the property owner has the right to reassess terms, including rent, and decide how to best manage their asset moving forward.
That said, there are still legal guidelines depending on the structure of the lease.
Timing: When Can Rent Be Raised?
For Month-to-Month Leases:
Rent can be increased with at least 30 days’ written notice before the new amount takes effect.
For Fixed-Term Leases (e.g., 12 months):
Rent cannot be raised during the lease term, unless the lease specifically allows for mid-term adjustments or increases tied to property tax hikes or insurance premium increases caused by tenant-related issues.
Rent may be increased when the lease is up for renewal, with advance notice.
Pro Tip: If your lease doesn’t clearly outline rent increase terms, it’s a good idea to review your state’s landlord-tenant laws before making any changes. You can find Michigan’s official landlord-tenant guidelines on the Michigan Legislature's Housing Law page.
"Yes, landlords can raise rent... it’s a reasonable and lawful part of managing rental housing."
How Much Can a Landlord Increase Rent?
There is no cap on how much rent can increase in Michigan. That said, most property managers and landlords raise rent by 3% to 7% per year to cover inflation, maintenance costs, and rising property taxes.
Most property owners base increases on:
Local rental market conditions
Property improvements or renovations
Rising costs (e.g. insurance, maintenance, property taxes)
Inflation
Tenant payment and interaction history
Pro Tip: While there is no legal maximum, thoughtful landlords often consider the long-term benefits of tenant retention and property stability. For more insights, check out this Forbes article on the benefits of tenant retention.
Related:Â How to Use Rental Incentives Effectively
Does Michigan Have Rent Control?
No, Michigan does not have rent control laws. In fact, rent control is prohibited at the state level under Michigan law (MCL 123.411).
While rent control policies are often well-intentioned and aim to shield renters from sudden cost increases, Michigan’s approach favors open market flexibility. This allows:
Property owners to reinvest in and maintain housing
Local markets to reflect supply and demand
New development to remain economically feasible
Availability of higher quality rentals
In cities that do use rent control (like New York or San Francisco), it’s typically part of a broader housing strategy—but often comes with trade-offs, such as reduced investment in rental stock or aging, under-maintained units and highlighted in studies by the CATO Institute and articles by the Foundation for Economic Education.
Michigan instead focuses on fair housing practices and sustainable, market-driven pricing that benefit both tenants and long-term housing quality.
What Makes a Rent Increase Legal?
To remain legal, a rent increase must:
Comply with the lease terms (only at renewal, unless otherwise stated)
Be delivered in writing with the proper notice
Not be retaliatory or discriminatory (e.g., based on protected class status)
Pro Tip: To avoid legal disputes, always document rent increases in writing and keep a record of when and how notice was delivered. For guidance on legal rent increase practices and fair housing compliance, check the U.S. Department of Housing and Urban Development’s Fair Housing Overview.
Sample Rent Increase Notice Requirement
For a month-to-month lease:
If rent is $1,200/month and the landlord wants to increase to $1,260 starting March 1, they must provide written notice no later than January 30 (30 days notice).
Tips for Property Owners
Landlords who increase rent successfully often follow best practices like:
Giving advanced notice beyond the legal minimum
Explaining the reason clearly (market, taxes, improvements)
Maintaining good communication and documentation
Keeping the increase reasonable and consistent with local trends
Pro Tip: For best practices on landlord responsibilities and rent increases, refer to the U.S. Department of Housing and Urban Development’s Rental Assistance and Landlord Resources.
What Should Tenants Do if Rent Goes Up?
If you receive a rent increase notice:
Review your lease — make sure the increase follows the terms.
Check the timing — was proper notice given?
Ask questions respectfully — most landlords are open to clarifying the reason.
Decide whether to renew or move — you are not required to stay beyond your lease term.
Pro Tip: Michigan residents can refer to the state's official Renters' Rights page for guidance on lease terms, notice periods, and protections under the law.
Final Thoughts
Yes, landlords can raise rent in Michigan—and when done properly, it’s a reasonable and lawful part of managing rental housing. With no statewide rent control, the focus is on fair housing practices, market awareness, and responsible ownership.
For tenants, the key is understanding your lease and communicating early. For landlords, it's about balancing property sustainability with tenant satisfaction. As always, keep in mind: this post isn’t legal advice—just good info. When in doubt, read your lease or call a pro!
Related:Â Common Questions for a Property Manager!
FAQs
Q: Can a landlord raise rent during a lease?
A: Generally, no. Rent cannot be increased during a fixed-term lease (like a 12-month agreement) unless the lease specifically allows for mid-term increases or, such as those tied to property tax hikes or insurance increases caused by tenant-related issues.
Q: How much notice does a landlord need to give before raising rent?
A: In Michigan, for month-to-month leases, landlords must provide at least 30 days’ written notice before a rent increase takes effect. For fixed-term leases, notice must be given before the lease renewal date.
Q: Is there a limit to how much rent can be increased in Michigan?
A: No. Michigan does not have rent control laws, so there is no legal cap on how much rent can be raised. However, increases must still follow proper notice procedures.
Q: Can tenants refuse a rent increase?
A: Yes—but only by choosing not to renew the lease. If a tenant does not agree to the new rental rate, they must move out at the end of the current lease term or the notice period.
Q: Does rent control exist in Michigan?
A: No. Michigan prohibits rent control at the state level (MCL 123.411). Rent increases are allowed as long as they follow lease terms and legal notice requirements.
Q: What should I do if I receive a rent increase notice?
A:
Review your lease
Check if proper notice was given
Ask questions respectfully
Decide whether to renew or moveTenants in Michigan can also review their rights on the Michigan Renters’ Rights page.
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About the Author Ricardo Reis - Learn About Ricardo
Entrepreneur, Inventor, Investor, Military Veteran. Ricardo is a member of G3 Management & Investments a division of Great Lakes Real Estate and a real estate professional. He is a real estate professional and a successful real estate investor of over 15 years.
NOT INVESTMENT, FINANCIAL, LEGAL, TAX, OR OTHER ADVICE: This blog is for informational purposes only and not a substitute for professional advice. We do not offer advice, solicitation, recommendations, or endorsements. You are solely responsible for evaluating the information's merits and risks. Always consult a qualified professional before acting.