Renting out your Kansas City 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 Kansas City, Missouri.
Let’s dive in!
How Much Can You Increase Rent?
There is no rent control in Missouri, so there are no rent increase laws in Kansas City, and landlords in this city are allowed to increase rent by any amount, as long as it does not breach the terms of the existing lease agreement. However, they should exercise caution and fairness when raising rents. Keep in mind that an excessive rent increase may lead to resident dissatisfaction and potential legal issues. Find a balance that works for both parties.
It's always a good practice to consider the local market and the impact of a rent increase on your residents.
If the market is experiencing a high demand for rental properties and low vacancy rates, landlords may have more flexibility in increasing rents. Also, if you have made significant improvements or added desirable features since the last rent increase, it may be reasonable to justify a higher rent. For example, if you have upgraded the kitchen appliances, installed new flooring, or added a fitness center to the building, residents may be willing to pay a higher rent for these added benefits.
In addition, if it has been several years since you last raised the rent, it may be appropriate to implement a moderate increase to account for inflation and rising costs of property maintenance and management.
In conclusion, while there may not be a specific legal limit on rent increases in Kansas City, landlords should approach rent increases with fairness and consideration. Open communication with residents can help ensure a smooth and mutually beneficial process.
When Can You Increase Rent in Kansas City?
According to local regulations, you must provide your residents with a written notice of your intent to increase rent at least 60 days before the proposed increase goes into effect. This advance notice allows residents ample time to plan and adjust their budgets accordingly. It's important to communicate effectively and clearly with your residents, providing them with all the necessary details about the rent increase and how it will be implemented.
How Do You Increase Rent?
Implementing a rent increase requires careful planning and execution. Here are the necessary steps to follow:
Review the existing lease agreement: Start by thoroughly reviewing the lease agreement to check for any stipulations regarding rent increases. Ensure that you are not violating any terms.
Research market rates: Research the current rental market in Kansas City to determine if the proposed rent increase aligns with prevailing rates. This will help you justify the increase and gather necessary information during potential discussions with residents.
Provide written notice: Prepare a written notice outlining the details of the rent increase, including the new rental amount, the effective date of the increase, and any other relevant information. Ensure that you provide this notice to your residents at least 60 days in advance.
Address resident concerns: Be prepared for resident inquiries or concerns about the rent increase. Engage in open and honest communication to address any questions or issues that may arise. This will help maintain a good landlord-resident relationship.
Document the notice: Keep a copy of the written notice and any proof of delivery in case any disputes or legal matters arise in the future.
Note: A Kansas City property management company can help with setting rents, raising rents, and more.
Giving Notice of Rent Increase
When giving notice of a rent increase, it's essential to follow the proper guidelines to ensure compliance with the law. Here are some key points to keep in mind:
Provide written notice: As mentioned earlier, it's crucial to provide residents with a written notice of the rent increase at least 60 days before it takes effect.
Delivery methods: You can deliver the notice using various methods, such as postal mail, certified mail with a return receipt, or hand-delivering the notice. Be sure to keep a record of how and when the notice was given.
Content of the notice: The notice should clearly state the new rental amount, the effective date of the increase, and any other relevant details or terms that residents need to know.
Be respectful and professional: Maintain a respectful and professional tone in the notice, making sure to avoid any language or statements that could be perceived as confrontational.
Final Thoughts: Rent Increase Laws in Kansas City, Missouri
Understanding and adhering to the laws regulating rental agreements in Kansas City, Missouri, is crucial for landlords to maintain good relationships with their residents while also protecting their rights. By following the regulations, providing sufficient notice, and being transparent in your communication, you can ensure a smooth and fair process for everyone involved.
Remember, every change in rent should be based on a reasonable assessment of market rates and comply with the terms of the lease agreement. By being well-informed and proactive, you can navigate the rent increase process with confidence and professionalism.
Looking for a professional property management company to help with setting and raising rents in Kansas City? Contact our team today!
