New Jersey Department of Community Affairs
Division of Codes and Standards
Landlord-Tenant Information Service
RENT INCREASE BULLETIN
February 2008
This bulletin explains the process that a landlord must follow in order to increase a tenant’s rent.
This process may be based on rent control ordinances in specific municipalities; for rental units
that are not governed by rent control ordinances the process is based on common law, which is
set by common practice and case law. This bulletin is for informational purposes only and
should not be used for legal interpretations or legal advice. Please consult an attorney for legal
services and advice when necessary.
Applicability
The information in this bulletin applies to all residential rental properties including mobile
homes, and land in a mobile home park. However, it does not apply to hotels and motels, and
other guesthouses rented to transient or seasonal tenants.
Notice Required
Before the landlord can increase the rent he must provide the tenant with a written Notice to Quit
and notice of the rent increase. (See Attachment A, Sample notice.) The Notice to Quit ends the
existing tenancy. However, being served with a Notice to Quit does not require the tenant to
vacate the rental premises.
The landlord must give notice within the timeframe stipulated within the lease (at least 30 days)
or as stipulated within the local rent control ordinance, if any. If the tenancy is month-to-month
the landlord must give a 30-day notice to Quit (given on the first day the rent is due).
Note: The Security deposit can be increased when the rent is increased but cannot exceed 1 ½
times the monthly rent.
When the Landlord May Increase the Rent
The landlord may only increase the rent at the beginning of the term of the lease. The landlord
cannot increase the rent while a lease exists. The landlord must offer the tenant the option of
entering into a new lease, at the increased rental rate, after the old lease expires. If the tenant
does not sign the new lease and does not move at the expiration of the old lease and has been
given a valid notice to quit and notice of rent increase, a new tenancy is automatically created at
the increased rental rate.
Refusal to Pay Rent Increase
If a tenant refuses to pay the rent increase and remains at the rental unit after the old lease
expires (establishing new tenancy), the landlord may file a legal action in Superior Court to have
the tenant evicted for failure to pay the rent increase. The landlord is not required to give the
tenant notice before filing an eviction action for non-payment of the rent increase.
Unconscionable Rent Increase
If the tenant refuses to pay the rent because the tenant believes the rent increase is
unconscionable or unreasonable, the tenant may withhold a portion of the rent. The tenant may
withhold the difference between the old rent rate and the new increased rate. However, the
landlord may take the tenant to court based on non-payment of rent increase, if this happens, the
tenant may argue to the judge that the increase is unconscionable. The landlord has the burden
of proving to the court that the rent increase is fair and not unconscionable.
Note: If the tenant chooses not to pay the rent increase he should continue to pay the regular
rent and be prepared to pay the full amount of the rent increase if the court rules in the
landlord’s favor.
Determining if a Rent Increase is Unconscionable
In Fromet Properties Inc. v. Dolores Buel, et al., the court found that in determining
unconscionability, the trial judge may consider: 1) the amount of the proposed rent increase; 2)
the landlord’s expenses and profitability; 3) how the existing and proposed rent compare to rents
charged at similar rental properties in the geographic area; 4) the relative bargaining position of
the parties; and 5) based on the judge’s general knowledge, whether the rent increase would
shock the conscience of a reasonable person.
Rent Control
The State of New Jersey does not have a law governing rent increases. However, municipalities
within the State may adopt ordinances regulating the amount and frequency of rent increases
within their specific municipality. A municipality’s ordinance may not cover all rental units. To
find out if a rent control ordinance exists, and if it applies to a specific rental unit, contact the
municipal clerk in the municipality where the rental premises is located. (See Attachment B,
Rent Control Survey.)
Exemption from Rent Control
Pursuant to N.J.S.A
. 2A:42-84.2 through 2A:42-84.6, certain newly constructed multiple
dwelling units may be exempt from rent control ordinances. Prior to entering into any lease for
tenancy, the landlord of an exempt property must notify the prospective tenant that the rental unit
is exempt from rent control. (See Attachment C, Newly Constructed Multiple Dwelling Law)
Public Financed and Subsidized Housing
Housing Developments owned or subsidized by the U.S. Department of Housing and Urban
Development (HUD), the New Jersey Housing and Mortgage Finance Agency (HMFA) or
regulated by the N.J. Public Housing and Development Authority are not subjected to municipal
rent control ordinances. For proper procedures for notice and comments on rent increase for
HUD buildings, call (973) 622-7900, ext. 3400 and (609) 278-7400 for HMFA buildings.
Example: NOTICE WHEN THERE IS NO RENT CONTROL
NOTICE TO QUIT AND DEMAND FOR POSSESSION AND
NOTICE OF RENT INCREASE
I ____________________, landlord of the premises located at, ____________________ in
which ______________________ (tenant) now resides requests that as of _________________,
(date) you quit the unit and give up peaceable possession thereof.
Should you desire to continue the occupancy of said unit, I request an increase in your monthly
rental of $_____________.
BREAKDOWN:
OLD RENT PER MONTH $___________
Increase $___________
NEW RENT $___________
Your rent payment is now due on the ________ of each and every month, hereafter.
Received: ___________________________ on _________________
(tenant) (date)
I certify that I personally delivered this notice to________________ on _____________.
(tenant) (date delivered)
_________________________________
landlord or agent
Attachment A
