Raising rent - when and how can it be done legally?

Do you own a rental flat? Sooner or later you will start thinking about raising the rent. This is only natural, especially when the costs of maintaining the property increase or the prices on the property market change.

Before you make a decision, however, you need to know one thing: you can't do it either way. The law precisely defines the rules for raising rentsto protect tenants. If you ignore these regulations, your increase may be considered invalid, and this is just the beginning of potential problems.

In this article, we will guide you through the process step by step. You'll learn how to legally and effectively increase your rent, what deadlines you need to meet and how to deal with situations where your tenant doesn't agree to the new terms. This is knowledge that will allow you to avoid stress and manage your property safely.

Legal grounds for rent increases - what does the Tenants' Rights Protection Act say?

The basic document governing this issue is the Act on the Protection of Tenants' Rights. It dictates the terms on which you, as a landlord, can raise your rent. Ignoring its provisions is a straightforward route to legal problems.

The key rules you need to bear in mind are first and foremost the frequency and amount of the increase. The law is clear that the rent may not be increased more than once every 6 months. Furthermore, the Act introduces a control mechanism. If your increase causes your rent on an annual basis to exceed 3% of the replacement value of the premises, the tenant gains the right to demand a written justification from you with a detailed calculation.

Concept	Explanation
Replacement value of premises	This is an indicator used to assess whether a rent increase is justified. It is calculated by multiplying the usable area of the dwelling by a special index announced by the provincial governor for the region concerned.
Limit 3%	If your planned rent increase will result in an annual rate in excess of 3% of this value, you must be prepared to justify your decision in detail to your tenant.

Step by step rent increase procedure - how and when to terminate a contract?

Merely wanting to raise the rent is not enough. You must complete the formalities in the right way and at the right time. The most important rule: any change to the rent requires to terminate it in writing. Any other form - email, SMS or verbal information - has no legal force and will be invalid.

You must deliver the termination document to the tenant in such a way that you are sure they have received it. The safest option is registered letter with return receipt.

Another key element is the term. The period of notice of rent is three full calendar months. This means that the new rate will not take effect until after that time.

Stage	Description of operation	Example
1. Sending notice of termination	You prepare and send a written rent notice.	You send the document by registered mail on 5 March.
2. tenant acceptance	The tenant receives the letter. From that moment, time begins to run.	The tenant receives the letter on 10 March.
3. the course of notice	The period of notice shall be counted from the end of the month in which the letter is received.	The three full months are April, May and June.
4. the new rental rate	The higher rent takes effect from the first day after the end of the notice period.	From 1 July, the tenant is required to pay rent at the new rate.

Tenant's refusal to accept an increase - what rights do both parties have?

When a tenant receives a letter from you informing them of an increase, they do not automatically have to agree to it. He or she has the right to make one of three decisions, each with different consequences. It is your responsibility as a landlord to know these scenarios and how to respond to them.

The tenant has two months after receipt of notice of termination to make a decision.

Tenant option	Effect on the tenancy agreement	What does this mean in practice?
Acceptance of the increase	The contract continues under the new conditions.	At the end of the 3-month notice period, the tenant will start paying higher rent.
Refusal to accept an increase	The lease agreement is terminated.	The tenant must submit a written refusal. At the end of the notice period, he is obliged to vacate the premises.
Challenging the increase in court	The contract continues and the reasonableness of the increase is decided by the court.	The tenant files a lawsuit. Pending judgment, he pays the rent at the existing amount. The burden of proving the right lies with you as the landlord.

No time for paperwork? Discover the advantages of tenancy management with guaranteed rent payment

Keeping an eye on deadlines, preparing letters, potentially negotiating with a tenant - the whole process of raising rent can be overwhelming. It is a time-consuming task that requires a good knowledge of the regulations and resilience to stress.

If you feel this is too much, there is a solution that will give you peace of mind and security. Professional tenancy management with rent guarantee is a service that takes all the burden of rental responsibilities off your shoulders.

By placing your flat in the hands of specialists, you are assured that all paperwork, including any rent increases, will be carried out lawfully and with due diligence. Most importantly, this service often includes guarantee of timely payment of rent. This means that even if the tenant is late, you will receive your money on time. This is an ideal option for landlords who want to profit from their property while avoiding all the hassle and paperwork.

Rent increase in a nutshell - key findings

Raising your rent is your right as a landlord, but in order to exercise it, you must act according to the letter of the law. The whole process, from the decision to implementation, is strictly regulated to protect both parties to the contract.

The most important thing to remember:

• Act in accordance with the law: This is based on the Tenants' Rights Protection Act. It defines how often and by how much you can increase your rent.
• Keep it in writing: Termination of the existing rate must be in writing and effectively delivered to the tenant.
• Respect deadlines: You are subject to a three-month notice period and the tenant has two months to respond.

Remember that the tenant has the right to refuse the increase, which leads to termination of the contract, or to challenge it in court. If the vision of going through these procedures yourself seems complicated to you, consider professional tenancy management. It is a solution that guarantees not only peace of mind and compliance, but often also income constancy thanks to a guarantee of rent payment.