Understanding Rent Increase Laws in Texas
If you’re a landlord in the state of Texas, you may think that it’s easy to increase rent because all you have to do is raise your rent every time the market goes up. However, even though you may think it’s going to be an easy thing to do, some regulations are set by the state that you must follow when it comes to raising rent. One small mistake can cause a normal rent increase to become a legal issue or result in a dispute between you and your tenant.
Many investors fall into this trap. Notice periods, lease agreements, retaliation, and local laws are very important factors that you will need to take into consideration before implementing a rental increase. Continue reading this post, as we will provide an overview of the Texas rent increase laws and what steps you can take to safely and legally raise your rental income.
Absence of Rent Control in Texas
Focus on Supply and Demand
There is no statewide rent control in Texas that limits the amount of rent you can charge or when you can raise the rent. Rather, supply and demand play a major role in pricing. Rents inevitably rise when housing is scarce and demand is high. Prices often level out or decline when more units enter the market or demand decreases. Consult with a Texas property manager if you have questions about rent adjustment laws.
Owning property gives you the option for flexibility, but requires you to read the market and not simply follow it. Surrounding areas have filled fast, and therefore, you have the opportunity to raise rental rates, but if you don’t understand the area, it may cause good tenants to leave due to a sudden increase in rental rates or a vacant property for an extended time.
This also illustrates why rental rates are significantly different between cities in Texas. Areas developing will see more significant rental increases than slower areas, which remain constant. An understanding of supply chains, population growth, and job trends will help you set competitive rental prices and maintain occupancy levels for your properties.
Landlord’s Control Over Rental Pricing
Since there’s no rent control law telling you how much you can charge for your property, this means that you have broad control over rental pricing. Landlords can increase rent in accordance with long-term investment objectives, operating costs, property upgrades, and market demand.
Liberation implies many freedoms; however, it does not mean that there are no rules governing these freedoms. Your ability to control the price of your rental property is contingent upon the rental agreement you signed at lease commencement and how you handled any potential rent increases during the term of your rental lease. If you give adequate notice to tenants that their rental price will be increasing and do not employ any behavior that could be construed as retaliatory or discriminatory, you will generally be entitled to establish a new rental rate when your current lease ends.
From the perspective of property owners, understanding how to maintain a balance between these two aspects of renting ensures that you are pricing your rentals correctly while staying within the confines of the law, thereby maintaining a basis for tenant confidence and decreasing the incidents of disputes and litigation that can negatively impact the profitability of your investment in real estate.
How to Support Tenants During A Rent Adjustment?
Texas has not implemented state-wide rent control, so landlords can raise rents within their discretion. However, the increase cannot be done through retaliation or discrimination, and for month-by-month tenants, a written notice must be provided at least 30 days in advance. Landlords can assist their tenants with the transition to higher rents by providing open and supportive communication, as well as practical assistance, when providing retentive support through market pressures.
Landlords should give at least 30 days’ written notice containing information regarding the new rent, the effective date of the increase, and the total payment due, particularly for month-to-month tenancies. It is not possible to increase the rent halfway through a fixed-term lease. Rent increases should not occur within six months of when a tenant complained about repairs and/or exercised their tenant rights, so as not to establish grounds for a retaliation claim. Furthermore, in 2025, there was an unsuccessful attempt to implement House Bill 2904, which would have set limits on rent increases of 5%-10% for certain types of housing.
Communicate the rent increase through letters that communicate your reasons, and thank the tenant for being a good tenant, but encourage questions and a discussion regarding the options available, and provide follow-up communication to build trust by addressing questions and concerns quickly.
You can provide incentives to help ease the transition, including minor upgrades, waived fees, flexible payment arrangements, etc. Provide tenants with information and access to various programs that can help them. Connect them to the Texas Department of Housing and Community Affairs (TDHCA) for available assistance programs or tenant unions as an advocate. Also, provide information regarding any available rental aid in areas such as Houston, where many people are facing affordability issues due to rising rents.
Final Thoughts
Rent hikes are occasionally inevitable, and landlords may find themselves in circumstances where they need to raise rent to maintain their financial stability. Rent adjustments are typically made by landlords to reflect market conditions, fight inflation, pay for growing operating expenses, and react to rising property values. Landlords must follow the Texas rent increase laws of 2024 while abiding by to rent increase legislation, and refrain from discriminatory tactics.