How To Prepare for a Rent Increase in Arizona

What would you do if you got a letter saying your rent was increasing by $800? In Arizona, this real-life nightmare became a reality when a landlord decided to increase their tenant’s rent by more than $800. With nowhere else to turn, this renter’s truck became their makeshift shelter, rendering them temporarily homeless until they found a new apartment within their budget. 

It’s a shocking scenario that no renter should have to endure.

Here’s the truth: Arizona lacks rent control measures, leaving landlords free to increase rent as much as they want. That puts many Arizonans at risk of homelessness from skyrocketing rent.

But don’t lose hope! While there are no restrictions to rent increases in Arizona, landlords just can't raise rents haphazardly. They’re limited to when they can raise rents and how much notice they must give tenants.

We’re here to empower you with all the knowledge you need to know about rent increase laws in Arizona and why having a renters insurance policy is essential during a rent increase.

Here’s what you’ll learn:

• Arizona Rent Increase Laws
• Are Rent Increases Ever Illegal in Arizona?
• What’s the Maximum Rent Increase Allowed in Arizona?
• When Can Landlords Increase My Rent in Arizona?
• How Often Can Your Rent Increase in Arizona?
• Negotiating a Rent Increase
• How Renters Insurance Helps You During a Rent Increase or Move
• Final Thoughts: How To Prepare for a Rent Increase in Arizona

Arizona Rent Increase Laws

There are currently no rent control or increase laws in the Grand Canyon State. That’s because the Arizona Landlord Tenant Act prohibits local governments from imposing rent control laws on counties or cities. Landlords have far more flexibility in managing their lease agreements in Arizona than they do in states like Oregon or California. 

However, they must act in good faith. They can’t raise rents for discriminatory or retaliatory reasons (more on this later).

Legislators have attempted to change the rent control laws in Arizona, though. For example, Analise Ortiz, who represents Arizona Legislative District 24, proposed a bill (HB 2086) to repeal an old law prohibiting cities from setting their own rent caps. Her new proposed law would let cities decide if they’d like to put a cap on rent prices.

Plus, Judy Schwiebert, who represents Arizona Legislative District 2, proposed a bill (HB 2161) to prevent landlords from raising tenants' rent by more than 10% each year. 

While no protections have passed yet, pressure for state government to act to strengthen tenant rights continues to rise as rents rise in Arizona. 

Are Rent Increases Ever Illegal in Arizona?

Yes. It’s illegal for your landlord to raise your rent payment during an active rental lease agreement term (unless otherwise stated on the lease agreement). 

A landlord also can't raise the rent for discriminatory reasons (like gender or race) or for retaliation, such as when you file a complaint because they failed to uphold their responsibilities.

How Do I Know If a Rent Increase Is Illegal? 

A rent increase can be illegal if the landlord does any of the following:

• Raise rent during an active rental lease term. 
• Raise rent due to discrimination or retaliation
• Raise rent without giving you a 30 days’ notice for a monthly lease or a 10 days’ notice for a weekly lease. 

On the flip side, a rent increase is legal in Arizona for most situations. As long as it takes effect after a lease ends, isn’t a punishment or discriminatory, or you are given enough notice, it’s legal for when your landlord raises the rent.

Who Do I Report Illegal Rent Increases To in Arizona?

If you think you are facing an illegal rent increase in Arizona, you can seek legal counsel. You can also contact the following offices to report illegal rent increases:

• Local City Attorney’s Office
• Civil Rights Division of the Arizona Attorney General’s Office
• U.S. Department of Housing and Urban Development

Some Tenant Advocacy groups that can help you figure things out include:

• Arizona Tenants Union
• Arizona Tenants Advocates
• Arizona Housing Coalition
• National Alliance to End Homelessness

What’s the Maximum Rent Increase Allowed in Arizona?

Arizona landlords can increase rent by any amount they want since there's no legal cap or limit on the amount of rent increase. But as mentioned earlier, if the two proposed bills pass, landlords will have to follow new restrictions on how they raise tenants’ rents in Arizona.

When Can Landlords Increase My Rent in Arizona?

Arizona landlords can't raise the rent in the middle of a lease term (unless the written rental agreement states otherwise). However, once the lease is up for renewal, they can raise it by any amount they want. 

How Often Can Your Rent Increase in Arizona?

Arizona rent increase laws allow landlords to raise rent anytime, provided the lease agreement is up for renewal, and they meet advance notice requirements.

For example, if you’re on a month-to-month tenancy, your monthly rent can go up every month, provided the landlord gives you a 30-days written notice.

In the case of long-term leases (like yearly or longer), the property manager can only increase the rent once the lease ends — unless the rental agreement states otherwise. 

If you’re on a week-to-week tenancy, your rent can go up weekly, provided the landlord gives you at least 10 days’ notice.

Negotiating a Rent Increase

Just because your landlord gives you a rent increase doesn't mean your options are only to accept it or move out.

You can attempt to negotiate the rent increase with your landlord to get a win-win solution. After all, the landlord wants to keep units occupied and limit the costs of finding a new tenant. 

Here are some steps to help negotiate with your landlord over a rent increase:

Research the Rent Rates in Your Area

Check the rent rates of other rental properties in your neighborhood. Is the raised rent close to the rent for similar apartments? 

You may have some leeway in your negotiations if your rental unit is so overpriced in your real estate market that your landlord can't find another tenant easily.

Record Your Discussions With the Landlord

Be prepared to write down, or record if your landlord agrees, all your discussions. Recording the information from your meetings with the landlord gives you easy points to reference later and helps avoid miscommunication.

Show Your Landlord You’re a Good Tenant

Being on good terms with your landlord and having a great tenant history helps here. 

Give your landlord specific examples of what you bring to the table as a tenant. For example, are you a non-disruptive tenant? Always pay your rent on time? Did you keep the unit in excellent condition? Use those factors to your advantage.

If you present your case well, your landlord may decide to forgo the increase for the time being to keep you around.

Show Them Your Renters Insurance Coverage

Prove to your landlord you’re a responsible tenant by showing them you have a renters insurance policy to protect your property. 

If you don't have a policy, you can get one at affordable rates from Goodcover.

Create a Win-Win Situation

Try to reach an agreement where you and your landlord win. For example, you can sign a longer-term lease in exchange for the rent remaining at its current rate. 

A long-term lease gives the landlord the reliability of continued tenancy, and they may be inclined to forgo the rent increase for the longer-term lease.

How Renters Insurance Helps You During a Rent Increase or Move 

You've negotiated with your landlord but can't seem to reach an agreement, and you feel you must move into a smaller space to save on cost.

When that happens and it’s time to move, or you've already moved but aren't sure how you'll decorate yet and need storage, renters insurance will come in handy. With Goodcover, you'll have peace of mind knowing that your property is protected while in storage for up to 30 days.

While rent prices may go up, renters insurance from Goodcover remains quite affordable.

To put it into perspective: Renters insurance in Arizona costs roughly $18 per month ($211 per year). But Goodcover Members living in Arizona pay around $11 per month on average ($132 per year).

Final Thoughts: How To Prepare for a Rent Increase in Arizona 

While Arizona rent increase laws allow landlords to raise rent as much as they want, they can't do so for discriminatory reasons or in retaliation. Depending on your current lease agreement type, they must also give you proper notice.

You can negotiate with your landlord to try to reduce your rent, but if you can't reach an agreement, you can always get a new place rather than sign a new lease.

Whether you’re negotiating for a rent increase or packing up for a new place, Goodcover can keep your stuff safe. Stay informed and protected in Arizona with affordable renters' insurance from Goodcover. 

Note: This post is meant for informational purposes, insurance regulation and coverage specifics vary by location and person. Check your policy for exact coverage information.

For additional questions, reach out to us – we’re happy to help.