27 Sep My son’s rent went up almost 15%. Can the landlord do that?

Q. My son and daughter-in-law have been renting a condo and their lease is up. But the landlord wants to raise the rent by almost 15%. I know costs are up everywhere but can they do that?
— Concerned parent

A. That’s a big hike.

Unfortunately, yes, in most cases, the landlord can raise the rent 15%.

There are some stipulations.

We’re going to assume your son and daughter-in-law don’t qualify for housing assistance under federal law, which has its own guidelines.

New Jersey has no law governing the size of rent increases, said Claire Toth, an attorney and certified financial planner with Peapack Private Wealth Management in Summit.

She cited a recent survey by Rent.com that found an average increase in the state of almost 33%.

There are some rules about how and when a landlord can raise the rent, she said.

“Rent can only be raised at the end of a lease term or with thirty days’ notice for a month-to-month lease,” she said. “The landlord must provide a Notice to Quit, formally ending the tenancy and a notice of the rent increase.”

The existing lease should spell out how far in advance the landlord must provide these documents, she said.

The landlord is also able to increase the required security deposit, but not to more than 150% percent of a month’s rent, Toth said.

“Some New Jersey municipalities have their own rules about rent increases,” she said. “Your son and daughter-in-law should contact their local municipal clerk to determine if they live in such a location and if so, what additional rules apply.”

They can always try a counteroffer to the landlord, especially if they have a solid payment history, given that it costs money for the landlord to prepare a rental for a new tenant.

And they should consider what it will cost them to move and to rent a new place. They may find staying put, even with the big rent hike, is more cost effective in the long run.

Email your questions to .

This story was originally published on Sept. 27, 2022.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.