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A Guide for Landlords on Navigating Rent Hikes in Arizona

Key Takeaways

  • Arizona has no rent increase caps on monthly rent or regulatory constraints on rent control laws.
  • If you want to increase the rent on a rental property, you must give the housing agency 60 days' notice of the new rental price. While there is no rent increase limit, the housing agency sets the rules for what is considered fair rent.
  • Arizona landlords can't ask for more than half a month's rent as a security deposit, including prepaid rent.

Published on Feb 7, 2024 | Updated on Feb 7, 2024

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Landlords in Arizona have flexibility in making rent adjustments without limitations. 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. 

2024 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 must report the new rent prices to the Public Housing Agency (PHA) 60 days before the increase in rent is applied to the renewed lease agreement. In 2023, state representative Analise Ortiz attempted to repeal the law, preventing towns and cities from regulating their rent caps. 

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

Rent hikes rose in the U.S. during 2023 but simmered by December. The average asking annual rent increase was 3.3% in 2023. 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 one: 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 two: 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. 

Visit SingleKey’s rent increase notice for essential information needed on your form. 

Step three: Notify your tenant of the rent hike

Typically, landlords will give their tenants a 30-day notice via email or in person.

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. 

FAQ: Arizona rent guidelines for landlords

Currently, there are no laws or rent control ordinances on rent hike limits in Arizona. A landlord can raise the rent to whatever they consider appropriate. As a landlord, it’s essential to stay up-to-date with evolving statewide rent control laws. 

According to the Arizona Tenants’ Rights and Responsibility Handbook, if your tenant asserts their right to livable rental housing or joins a tenants’ organization, retaliating against them by raising the rent is against the law. Retaliation includes increasing rent before or during lease renewals, withholding services, or evicting within six months of the tenant raising concerns to the property owner. 

For both fixed-term and periodic leases, landlords should give their tenants a 30-day notice if they do not plan to renew the lease. 

Our final thoughts

Streamline your rent collection effortlessly with our complimentary automated system. Landlords have the ability to adjust rent collection at their convenience—whether it’s increasing rent, delaying next month’s rent collection, or canceling at any time. Learn more about SingleKey’s automated Rent Collection to ensure prompt payments and minimize concerns of nonpayment of rent.

Learn more about resources in Arizona

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