Pennsylvania Rent Increase Laws

Is there a rent increase limit in Pennsylvania? 

Pennsylvania rent increase laws aren’t as strict as the guidelines in other states — especially when it comes to price limits. Before we discuss notice requirements, let’s cover the basics:

Statewide caps: While state law doesn’t set a limit, always use your market rate when adjusting rent. Use it to determine an updated rate that’s both reasonable and competitive, based on renter demand, your unit’s size, and property features.

Local rent control ordinances: Pennsylvania doesn’t prohibit rent control and stabilization at the county or city level. However, no local jurisdictions currently regulate rent. But remember, local laws evolve. Check your area’s regulations before raising rent, just in case.

Exceptions: Some states exempt certain properties from rent control, but Pennsylvania doesn’t. As a result, federal programs such as Section 8 may apply across the state.

Rent Increase Notice Periods

Because state law doesn’t outline specific notice periods for raising rent, landlords generally follow the legal rules for terminating a tenancy (68 Pa. Stat. § 250.501(b)). Like most states, the process depends on the type of lease agreement you use. Here’s how it works:

Fixed-Term Lease

First off, you can’t change the unit’s monthly rate in the middle of an active lease unless your agreement permits it. Instead, wait until the tenancy ends to propose a new rate when negotiating the renewal.

Secondly, give tenants at least 30 days’ notice. When it comes to terminating a tenancy, state law requires 30 days’ written notice for agreements longer than 1 year (68 Pa. Stat. § 250.501(b)). As a best practice, follow the same rule when raising rent with fixed-term leases.

Month-to-Month Lease

When terminating a tenancy, state law requires landlords to give 15 days’ written notice for agreements less than 1 year (including month-to-month agreements). However, state law doesn’t directly outline rent increase notices, creating a legal gray area. As a result, top landlords err on the side of caution by providing 30 days’ notice for tenancy-at-will arrangements (68 Pa. Stat. § 250.501(b)).

Pro Tip: Give tenants 30 days’ notice if you’re using a month-to-month room rental agreement, as well (68 Pa. Stat. § 250.501(b)).

How to Deliver a Rent Increase Notice in Pennsylvania

Don’t try to call your tenant on a Sunday morning to tell them about the new rate. When discussing an upcoming adjustment, use legally binding delivery methods, including:

• Delivering the letter to the tenant personally.
• Post the notice on the unit’s front door.
• Using Certified Mail (68 Pa. Stat. § 250.501(e)).

If you’re interested in sending the notice digitally via property management software, be sure to include electronic notice provisions in your lease. Tenants must agree to the process in writing for courts to consider it legally binding.

Pro Tip: When mailing the letter, add a few days to the notice period to give your tenant time to receive it. And if you’re posting it on the front door because the tenant wasn’t home, we recommend sending a copy by mail as well.

Understanding Illegal Rent Increase and Retaliation

Compared to other states, Pennsylvania’s anti-retaliation laws are narrow. The state’s policy only prohibits landlords from terminating or refusing to renew a lease because the tenant (or a household member) joined a tenant union (68 Pa. Stat. § 250.205).

However, tenants can still raise a dispute against you if you increase their rent to punish them for exercising their legal rights, including:

• Complaining to a government agency about health and safety violations.
• Requesting repairs from the landlord.

As a best practice, avoid all forms of retaliation and discrimination. The federal Fair Housing Act (FHA) protects tenants from discriminatory increases based on protected traits, such as:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability (Fair Housing Act)

Overall, make sure your rent increases are fair and consistent across all tenants. Document your process and keep a clear paper trail in case you need it to defend yourself in court. And never attempt a mid-lease hike unless your rental contract permits it.

How to Write a Pennsylvania-Compliant Rent Increase Letter

When preparing your rent increase letter, be sure to include the following details:

• Property address (don’t forget the unit number)
• Tenant names
• New total rent amount
• Exact dollar amount of the increase
• Effective date
• Instructions for tenants to accept or opt out

Save time and reduce busywork with our free, standardized rent increase letter template. When you use a streamlined template, you mitigate he-said-she-said miscommunications and human error.

Managing the Rent Increase Process with Tenants

Here’s how to move forward depending on how your tenant responds to the letter:

• Accept: Prepare the new lease and proceed with the renewal. Once everyone signs the contract, start charging the new amount on the effective date. Pennsylvania doesn’t mandate grace periods, even in the first month of a new rate.
• Decline: Start discussing the move-out process with your current tenant. Then, get ready to re-rent your unit by creating the rental application and new lease agreement.
• Negotiate: When responsible tenants want to discuss your proposal, consider offering them an extended lease period. Or, delay the rent increase’s effective date.

Overall, raising rent is easy when you understand Pennsylvania rent increase laws. Use this guide to keep your tenant relationships positive — and your rental income flowing.