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What can tenants in Utah do if their landlord increases the rent?


What can tenants in Utah do if their landlord increases the rent?

When Aaron Murphy moved from California to Utah in 2021, he found a one-bedroom basement apartment in Midvale to rent for $1,000 a month.

“I consider myself quite lucky to be working in this area,” said the 30-year-old. “It’s a good place, a good location.”

About a year later, Murphy’s landlord raised his rent by $200 a month. This required a little more budgeting, but he felt it was a fair increase considering what others paid to live in Salt Lake County.

Since Murphy was new to Utah, he wondered: Are there any laws regulating rent increases or determining how much a landlord can increase the rent?

Short answer: No, there isn’t.

“For most private landlords, there is no real limit or cap on how much they can raise rent,” said Daniel Crook, lead attorney for Utah Legal Services’ housing task force. “It’s very much a private market-driven decision made by landlords on an individual basis.”

And while you may be wondering about this, you should know that the legislature has banned local rent control. According to code: “A county, city, or municipality shall not enact any ordinance or resolution regulating rents or fees on private residential property without the express authorization of the Legislature.”

Murphy was one of many tenants in Utah whose rent was increased between 2020 and 2022.

Dejan Eskic, senior research fellow at the Kem C. Gardner Policy Institute, said that during the two years at the start of the pandemic, there were rent increases on a scale of a decade. According to a Institute report“The average asking rent in Salt Lake County increased 11.0% annually between 2020 and 2022, compared to 2.6% annually between 2010 and 2020.”

However, Eskic said a record number of apartments were built in Utah recentlyThe increased supply has caused prices to stagnate or even fall – although rents are still high, and additional fees can also accumulate.

“For the first time in over a decade, supply has exceeded demand,” Eskic said.

It won’t stay that way forever. High financing costs are slowing down the construction of apartments and homes, said Eskic. He expects rents to rise again at the end of 2026 or the beginning of 2027.

After extreme increases in recent years, some Utah tenants have called for caps on the amount of rent increases. But Eskic said the Economic literature It is quite clear that strict rent control in a market means less housing supply.

“While you cap rents, you don’t cap maintenance and upkeep costs, so you’re essentially stifling production,” he said. “Developers are getting less and less return every year.”

If your landlord raises your rent, you can shop around to find the best option. With more rentals available online, Eskic says renters have a bit more of a competitive advantage. To attract renters, many offer incentives like a month or two of rent-free time when you sign a new lease.

Typically, Crook said, your landlord cannot increase the rent before your lease expires, but he stressed that it is important to read and understand the contract because it sometimes contains exceptions.

Crook said landlords are only required to give tenants 15 calendar days’ notice of the rent increase before the next due date, unless the individual lease states otherwise. When a tenant’s lease ends, Crook added, the landlord also only needs to give 15 days’ notice that they will not renew the tenant’s lease and that the tenant must move out.

Denise George, a Utah-licensed paralegal specializing in tenancy law, has a podcast called “Two-minute tenants” for renters in Utah and offers free brief consultations for renters. She said renters can try to negotiate with their landlord, but added the caveat that “first, you should remember that the landlord has virtually all the power in this situation.”

She recommends being polite and professional and keeping emotions out of the conversation. George suggests bringing up things like “I’ve been a really good tenant” or “I’ve always paid on time,” and thinking about whether it’s best to communicate in person, by phone, or in writing. Tenants can also ask to stay at the old rate for a month or two while they look for a new place to live.

“Sometimes it can be more profitable for the landlord to keep a tenant at a lower rent than to leave their apartment vacant for even a month, depending on how high the bills are,” George said.

If your landlord is willing to negotiate, George says you should make sure to get it in writing, not just verbally.

Still, negotiations may be unsuccessful. George said when a lease expires, there are no more promises. Your landlord could raise your rent or decide not to renew your lease.

“Since your lease is up soon, you should keep in mind that you may no longer be able to afford the apartment, so have some temporary plans in place just in case,” George said.

Previous legislative initiatives have failed to extend the notice period for rent increases. Republican Congressman. Marsha Judkinswho is will not stand for re-election, tried during In the 2024 legislative period, landlords will be required to notify their tenants of rent increases 60 days in advance.

Republican congressman. Tyler Clancy He told KUER that he would like to succeed Judkins and work on future bills that would provide tenants with more information about rent increases.

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