How to Raise Rent Legally in Texas

Texas Rent Control: The Basics

Texas is one of the states that prohibits rent control. Under Texas Government Code § 214.002, the state explicitly bans cities and counties from imposing rent control ordinances. This means there is no legal cap on how much a landlord can raise rent.

However, just because you can raise rent by any amount doesn't mean you should — or that there are no rules to follow. Timing, notice, and fairness all matter.

When Can You Raise Rent?

During a Fixed-Term Lease

You generally cannot raise rent during a fixed-term lease (e.g., a 12-month lease). The rent amount is locked for the entire term unless the lease specifically allows for mid-lease increases (which is rare and must be clearly stated).

At Lease Renewal

This is the most common time to raise rent. When the current lease expires, you can offer a renewal at a new rate. The tenant can accept the new rate or move out.

Month-to-Month Tenancies

For month-to-month leases, Texas law does not specify a required notice period for rent increases — but most leases require the notice stated in the lease, commonly 30 days. If your lease is silent, a 30-day notice is standard practice.

How Much Notice to Give

While Texas law doesn't mandate a specific notice period for rent increases (except what's in your lease), best practices are:

• Fixed-term lease renewal: 60-90 days before the lease ends, so the tenant has time to decide whether to renew at the new rate or find a new place.
• Month-to-month: 30 days before the increase takes effect.

Giving more notice is always better — it gives tenants time to budget, reduces pushback, and helps retain good tenants.

How to Raise Rent: Step by Step

Step 1: Research Market Rates

Before raising rent, research comparable rentals in your area:

• Check sites like Zillow, Apartments.com, and Rent.com for similar units
• Consider your property's features: square footage, amenities, condition, location
• Factor in recent improvements you've made

A rent increase that's significantly above market will drive good tenants away — and a vacant unit costs more than a slightly below-market rent.

Step 2: Justify the Increase

Common reasons to raise rent include:

• Property improvements — new appliances, renovated bathrooms, updated HVAC
• Rising property taxes and insurance premiums
• Increased utility costs (if landlord pays)
• Market-rate adjustments — your rent is below comparable units
• Inflation and increased maintenance costs

Be prepared to explain the increase to your tenant — transparency builds trust.

Step 3: Send Written Notice

Always provide rent increase notice in writing. Include:

• The current rent amount
• The new rent amount
• The effective date of the increase
• The new lease terms (if renewing)
• The deadline for accepting the new terms
• A polite explanation of the reason for the increase

Step 4: Handle Tenant Response

Your tenant may:

• Accept the new rate and sign a new lease
• Negotiate — be open to discussion if they're a good tenant. Sometimes a smaller increase is worth keeping a reliable tenant
• Decline and move out — respect their decision and give them a positive reference if they were a good tenant

How Much Should You Raise Rent?

Typical annual rent increases range from 3% to 10%, depending on the market. Consider:

• 3-5% is typical in stable markets and for tenant retention
• 5-8% is common with property improvements or rising costs
• 8-10%+ should be reserved for significant market shifts or major renovations

Large increases (15%+) risk losing good tenants and creating vacancies. The cost of turnover (make-ready, vacancy, marketing, screening) often exceeds the additional rent.

What You Cannot Do

Even without rent control, certain actions are illegal:

• Retaliatory increases — raising rent because a tenant complained about repairs or reported a code violation. Texas Property Code § 92.316 prohibits retaliation within six months of a protected tenant action.
• Discriminatory increases — raising rent based on race, religion, familial status, disability, or other protected classes violates the Fair Housing Act.
• Mid-lease increases (unless the lease specifically allows it)
• Skipping the notice required by your lease

The Cost of Tenant Turnover

Before raising rent aggressively, calculate the cost of losing a tenant:

• Vacancy costs: 1-2 months of lost rent while finding a new tenant
• Make-ready costs: $500-$3,000 for cleaning, paint, and minor repairs
• Marketing and screening: $100-$500
• Risk of a bad tenant: a new tenant who doesn't pay or damages the unit can cost thousands

A good tenant paying slightly below market is often more profitable than an unknown tenant paying market rate.

How RentTrust Helps

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Legal Disclaimer: This article provides general information about Texas rent increase law and is not legal advice. Consult a qualified attorney for advice about your specific situation.