Whether you’re working with a property management company or running your rental business solo, Texas rent increase laws govern the way you update your unit’s price. The Lone Star State isn’t a rent-controlled region, but legal guidelines require you to take certain steps when raising a tenant’s rent payment amount.
Let’s walk through the proper protocols and compliance standards in Texas. Whether you’re leasing a sprawling ranch in Hill Country or a modern condo in Dallas, here’s what you need to know about notice periods, delivery methods, and anti-retaliation laws. Plus, we include a free downloadable rent increase letter template from TurboTenant.
Is there a rent increase limit in Texas?
Texas grants landlords many freedoms, including the ability to set their own price points. Currently, state law doesn’t outline rent control policies.
Here’s a quick recap of Texas rent increase laws covering legal limits, local ordinances, and exceptions.
Statewide caps: In Texas, there are no laws limiting rent increases. As a result, most landlords refer to the market rate. Use it to determine a reasonable rent amount based on your property’s size, features, and local demand.
Local rent control ordinances: In general, Texas law prohibits a city or county from regulating rent. However, local governments may implement rent control during extreme housing emergencies, but the governor must approve the policy in advance (Tex. Prop. Code § 214.902).
Exceptions: Beyond the state’s narrow exception that permits rent control during housing emergencies (Tex. Prop. Code § 214.902), Texas law doesn’t exempt specific property types. However, federal and subsidized housing programs may apply.
Rent Increase Notice Periods
While Texas rent increase laws don’t cap prices, you still have to give your tenants advance notice. But, as in many states, the lease agreement type you use determines the notice period.
Fixed-Term Lease
Landlords can’t raise rent in the middle of a fixed-term lease. Instead, you must propose a new rate when negotiating a renewal. In these instances, Texas law doesn’t define a notice period for fixed-term leases. We recommend giving tenants at least 30 days’ written notice anyway.
Not only does it express professionalism, but it’s also the right thing to do. After all, no one wants to learn that their rent is going up at the last minute.
Keep in Mind: If you want to adjust the rent mid-tenancy, add a clause in your lease that permits it. Otherwise, you breach the agreement and may be liable for penalties.
Month-to-Month Lease
Similar to most states, Texas law requires notice for a month-to-month agreement. While the law doesn’t specify rules for increasing rent, landlords follow the state’s process for terminating the agreement. Therefore, give your tenants at will 30 days’ written notice before making any changes to the arrangement, including raising rent (Tex. Prop. Code § 91.001).
If you have a month-to-month room rental agreement, give your tenants at least 30 days’ notice in writing (Tex. Prop. Code § 91.001).
How to Deliver a Rent Increase Notice in Texas
When proposing a new rate to tenants, use the following delivery methods to comply with state guidelines:
- Deliver the letter to the tenant or someone at the property who’s over 16 years old.
- Post the notice on the inside of the front door (or outside the front door if you can’t enter the unit).
- Send the increase letter through Certified Mail.
- Use landlord software or email to notify tenants electronically if they agree in writing (Tex. Prop. Code § 24.005).
Generally, Texas rent increase laws start the notice countdown when tenants receive the letter. If you mail it, we recommend waiting 3 days to accommodate delivery delays.
Understanding Illegal Rent Increase and Retaliation
Above all, never try to punish tenants by raising rent. State law strictly forbids landlords from retaliating against tenants for exercising their legal rights, such as:
- Complaining to a government agency about code violations.
- Reporting a repair or habitability issue (Tex. Prop. Code § 92.331).
Keep in Mind: If you increase a tenant’s rent within 6 months of them doing the above, local courts presume retaliation (Tex. Prop. Code § 92.331). Then, you must prove that you adjusted the rate in good faith and applied similar increases across all tenants. In these cases, we recommend consulting a trusted lawyer.
Additionally, federal law bans discriminatory increases based on a tenant’s race, sex, religion, disability, or other protected traits (Fair Housing Act). Stay compliant and avoid disputes by giving proper notice, being fair, and avoiding mid-lease hikes if your lease doesn’t permit them.
How to Write a Texas-Compliant Rent Increase Letter
Every rent increase letter should include the following information:
- Full property address with unit number
- Tenant names
- Exact dollar amount of the increase
- Updated rent total and effective date
Make sure you explain how tenants can accept the new rate or opt out. If they don’t want to proceed with the increase, they must move out of the unit when their lease ends.
To cover all the basics, try our free rent increase letter template. We included all the information you need in a friendly, professional, and consistent letter to mitigate he-said-she-said disputes.
Managing the Rent Increase Process with Tenants
Finally, wait to see how tenants respond to your proposal. Here are a few quick tips for each scenario:
- Accept: When tenants agree, it’s smooth sailing. Have tenants sign the updated lease and begin charging the new rate on the effective date.
- Decline: After you discuss your move-out protocols, start preparing to re-rent the unit. The faster you find a new tenant, the better.
- Negotiate: Sometimes, tenants ask you to rethink your new rate. If you want to retain a great tenant, consider negotiating by offering a longer lease or covering certain utilities.
All things considered, raising rent is a routine part of managing rentals. At the core, it helps you keep your business profitable and in line with shifting markets. Use our helpful guide on Texas rent increase laws to create a clear roadmap to legal compliance and positive tenant relationships.
Texas Rent Increase FAQs
How much can I raise rent in Texas?
Because state law doesn’t set a defined cap, most landlords use the market rate as a guide.
Is there a maximum late fee in Texas?
There aren’t any laws limiting Texas landlords’ ability to charge late fees for rent.
Can I increase rent if the tenant is on a verbal agreement?
If you have a month-to-month verbal agreement, you must provide at least 30 days’ written notice to raise rent legally (Tex. Prop. Code § 91.001).