Landlords in Arizona have flexibility in making rent adjustments without limitations. For a month-to-month lease, you can increase the rent as much and as often as you like, provided you give your tenant proper notice (fixed-term leases require you to wait until the term expires before implementing a rate hike). Still, raising the rent is a significant decision that takes careful consideration.

In this guide, we’ll explore steps in making rent adjustments with insights on ensuring a fair process that maintains a positive relationship with your tenant. 

2025 updates to Arizona’s rent increase guidelines

According to the Arizona State Legislature, cities can’t make their own rent increase laws on how much a landlord can charge for rental increases unless a city agency owns the rental property. 

Landlords participating in the Housing Choice Voucher Program must report their new rent price to the Public Housing Agency (PHA) 60 days before the rent increase applies to the lease agreement.

As of January 1, 2025, Arizona has eliminated the residential rental transaction privilege tax (TPT). The TPT is a tax that landlords pay for the right to conduct business in the state. Typically, this tax is passed on to tenants, which means the change has the potential to lower the cost of rent. The new law requires landlords to lower their rent fee by the revoked tax starting in 2025, but they can resume charging the same amount in 2027.

Any Arizonian with goals to become a landlord should stay up-to-date with new regulations in their regions dictating annual limits on raising the rent. State regulations currently govern rent hike laws, but demands from tenants and local governments suggest a future where cities shape their own rules.

How to raise rents in Arizona

As a landlord, it’s crucial to optimize your cash flow and retain good tenants, so looking at yearly market trends and reviewing what you can afford is essential.

When the end of the lease term nears, and it’s time to consider rent price hikes, consider taking the following steps to implement fair prices and maximize your ROI.

Step 1: Determine your new rent price

Though Arizona has no rent control policies or caps, you still want to raise the rent within reason. The real estate market will influence rising rents. Here is a list of questions to consider when you’re trying to make sense of market trends, your maintenance budget, and your cash flow:

• What are other nearby rental properties with similar amenities charging for rent?
• How much will your maintenance and repair budget go into the new lease term?
• What are your own financial needs and goals?
• What would your tenants consider to be a reasonable rent price? 

Landlords can adjust rent in residential properties without causing distress to tenants. Your new rent needs to cover operating costs and not be unreasonably higher than the current rent. Once you have a number in mind, you must give proper notice to the PHA. 

Step 2: Prepare the notice of rent increase

When sending the rent increase notice by email, use hyperlinks and include  any necessary forms from the appropriate legal sources. It’s the landlord’s preference if they want to include an explanation detailing the reasoning behind the change. 

Step 3: Notify your tenant of the rent hike

Landlords must give their tenants a 30-day notice of the rent increase for a month-to-month lease. A minimum of 10 days notice is required for a week-to-week tenancy. For a fixed-term lease spanning a year or more, it’s customary to provide at least a 30-day notice.

Resolving issues about rent control

To address your tenant’s concerns about the new rent price, consider finding a middle ground by proposing a reduced rent hike. Alternatively, you can tactfully communicate with your tenant the option of moving out, if necessary, by giving them a fair notice to make arrangements. Communicating and abiding by the landlord-tenant laws will help facilitate a good relationship.