At some point, every landlord needs to raise rents to keep up with rising costs. But before you raise your prices in Scottsdale, Phoenix, Tucson, and beyond, consider Arizona rent increase laws.
The Grand Canyon State prohibits rent control, but you still need to follow the laws governing how you adjust a tenant’s rent payment amount.
Here’s everything you need to know about Arizona’s notice requirements. We’ll cover how to write (and deliver) a rent increase letter, and how TurboTenant’s free template makes compliance quick and easy. Let’s get started.
Is there a rent increase limit in Arizona?
The short answer? No. Landlords can raise the rent by any amount they want. Let’s review Arizona rent increase laws in detail.
Statewide caps: AZ law doesn’t set a cap on how much you can raise your tenant’s rent. However, there is a rule you should be aware of: You can’t increase the amount in the middle of an active tenancy.
Because there’s no legal limit, we recommend checking your local market rate when adjusting rent. By considering your property’s size, features, and renter demand, you can calculate an appropriate average price. It’s a great way to stay competitive while keeping your business profitable.
Local rent control ordinances: In Arizona, a county or city can’t impose rent control policies on privately-owned residential rentals (Ariz. Rev. Stat. § 33-1329). Put simply, there aren’t any rent stabilization measures in Apache, Gila, La Paz, or any other county.
Exceptions: Even though Arizona doesn’t have rent control laws at the state level, federal housing programs may impose additional rules. As a result, Arizona law exempts state-owned, government-owned, and subsidized housing (Ariz. Rev. Stat. § 33-1329).
Rent Increase Notice Periods
Next, let’s discuss advanced notice requirements. While you can raise rent at the end of a tenancy, you can’t just spring changes on your tenants. You must give them enough time to make a decision, and the time required varies based on the length of the lease agreement.
Here’s how it works:
Fixed-Term Lease
You have to wait for your fixed-term lease to end, and then incorporate the new rent rate into your renewal contract.
In these cases, Arizona law doesn’t require you to notify tenants in advance. But we recommend giving tenants at least 30 days’ notice, so they have enough time to decide whether to stay and pay the new price or move out.
Month-to-Month Lease
For a tenancy-at-will agreement, state law requires advance notice. Landlords must give tenants at least 30 days’ written notice before changing the terms of a month-to-month agreement, including rent-increase modifications (Ariz. Rev. Stat. § 33-1375(B)).
Room Rental Agreements
If you’re using a room rental agreement, you still must comply with Arizona’s notice requirements. In other words, give tenants 30 days’ written notice for a month-to-month lease (Ariz. Rev. Stat. § 33-1375(B)). And if you have a fixed-term lease, we recommend telling tenants in advance as well.
How to Deliver a Rent Increase Notice in Arizona
You can’t just send a tenant a text and call it a day. Instead, you must follow the state’s specific notice procedure when sending a rent increase letter. Arizona law requires landlords to use the following delivery methods:
- Hand delivery to the tenant and
- Certified Mail (Ariz. Rev. Stat. § 33-1313).
Additionally, state law explains that if you use Certified Mail, the notice period begins either when the tenant receives the letter or 5 days after you mail it, whichever happens first (Ariz. Rev. Stat. § 33-1313).
Keep in Mind: State law doesn’t specifically recognize digital delivery methods. If you want to use landlord software, we recommend adding an electronic notice clause to your lease and having tenants agree in writing. As a best practice, send your digital notice in addition to the state’s preferred methods of hand delivery or Certified Mail.
Understanding Illegal Rent Increase and Retaliation
Arizona rent increase laws strictly prohibit all forms of retaliatory conduct. You can’t raise a tenant’s rent, decrease your services, or pursue eviction after your tenant does any of the following:
- Complains about health and safety issues to government agencies or the landlord,
- Organizes or becomes a member of a tenant union, or
- Complains to a government agency that enforces the Wage-Price Stabilization Act (Ariz. Rev. Stat. § 33-1381).
Beyond anti-retaliation laws, all U.S. landlords must comply with the Fair Housing Act (FHA). Make sure your rent increases are fair and consistent across all tenants. Avoid all forms of discrimination, especially against the following traits protected under federal law:
- Race,
- Color,
- National origin,
- Religion,
- Sex,
- Familial status, and
- Disability (Fair Housing Act).
Did You Know? If you attempt to raise your rent in the middle of an active tenancy without a clause permitting it, you breach the contract. As a result, you may be liable for penalties.
How to Write an Arizona-Compliant Rent Increase Letter
We’ve covered the Arizona rent increase laws, dictating adjustment limits and notice requirements. Next, we’ll explain how to put it into practice.
The first step in raising your monthly rate is to send your tenant a rent increase letter. Keep it clear and compliant by adding these specific details:
- Property address (don’t forget the unit number),
- Tenant names,
- New total rent amount,
- Exact dollar amount of the increase,
- Effective date (per Arizona’s notice requirement laws), and
- Instructions for tenants to accept or opt out.
Instead of writing the letter from scratch, try using our free Arizona rent increase letter template. It makes the process fast and easy while maintaining consistency and professionalism every time.
Managing the Rent Increase Process with Tenants
After you tell tenants about your new price, the ball is in their court. Here’s what options your tenants can choose from:
- Negotiate: Tenants may sometimes ask to adjust the price. If your tenant is responsible and you’d like to keep them in your unit, consider meeting them halfway. Instead of dropping your price, you can offer a longer lease period or push back the effective date.
- Accept: When tenants agree to the new rent, prepare the updated lease that details the new rate. Once they sign the renewal, you can begin charging the increased rent effective on that date. State law doesn’t require you to provide a special grace period after you increase rent.
- Decline: If your tenants don’t want to renew, get ready for the move-out process. Begin searching for your next tenant to reduce gaps in rental income.
We hope this guide helped you understand Arizona rent increase laws. Keep these legal guidelines in mind to avoid disputes and keep your income flowing.
Arizona Rent Increase FAQs
How much can I raise rent in Arizona?
State law doesn’t cap rent increase amounts.
Is there a maximum late fee in Arizona?
Arizona law doesn’t regulate late fee amounts, either.
Can I increase rent if the tenant is on a verbal agreement?
Yes, but you must give your tenants at least 30 days’ written notice if you’re using a month-to-month lease agreement (Ariz. Rev. Stat. § 33-1375(B)).