21 May 7 Smart Ways to Handle Rent Increases: The Ultimate Guide for St. Louis Landlords

How to Handle Rent Increases: A Guide for St. Louis Landlords

As a landlord in St. Louis, knowing how to handle rent increases effectively is key to maintaining both profitability and good tenant relationships. Whether driven by rising property costs, inflation, or improvements you’ve made, learning how to handle rent increases properly can help you avoid tenant turnover and legal issues. This comprehensive guide covers everything you need to know to handle rent increases smoothly and responsibly.

1. Understand Legal Requirements When You Handle Rent Increases

The first step in learning how to handle rent increases is understanding the legal framework in Missouri and St. Louis.

• Missouri does not impose rent control, so landlords can raise rent. However, you must provide proper notice.

• For month-to-month tenants, a minimum of 30 days’ written notice is required before a rent increase takes effect.

• Lease agreements may specify when and how rent can be increased. If not, increases generally apply only at lease renewal.

• Always deliver your rent increase notice in writing to ensure you meet legal standards.

By understanding these rules, you can confidently handle rent increases without risking disputes or violating tenant rights.

2. Analyze the Market and Property Value

Raising rent arbitrarily can drive away good tenants. To ensure your new rates are justifiable:

Do a Comparative Market Analysis (CMA):

• Look at comparable rental units in your neighborhood (size, condition, amenities, location).

• Use platforms like Zillow, Rentometer, or local St. Louis property management websites to benchmark.

Consider Recent Upgrades or Added Value:

• Have you renovated kitchens or bathrooms?

• Installed new HVAC systems?

• Added washers/dryers or improved landscaping?

If you’ve added value to the unit or building, it may warrant a higher rent.

Factor in Rising Expenses:

• Property taxes

• Insurance premiums

• Maintenance and repair costs

• Inflation or interest rate fluctuations

All of these can be valid and transparent reasons to raise rent.

3. Communicate Clearly and Respectfully with Tenants

Raising rent is a touchy subject—how you deliver the message can influence how it’s received.

Send a Formal Written Notice

Include the following:

• The current rent

• The new rent amount

• The effective date of the increase

• A brief explanation or reason for the increase

Sample Language:

“We’ve conducted a review of our rental rates and operating expenses. Due to increased property maintenance costs and current market trends in the St. Louis area, your monthly rent will increase from $1,200 to $1,275 effective July 1, 2025.”

Give Plenty of Lead Time

While the legal minimum is 30 days, giving 60+ days’ notice can help soften the blow and show goodwill

4. Offer Flexibility and Alternatives

If you have a solid, long-term tenant, it may be worth offering flexibility:

• Incentives for renewing: Offer a smaller increase if they sign a longer lease.

• Gradual Increases: Instead of a large jump, implement phased increases.

• Upgrades in exchange for higher rent: Paint, improved appliances, better parking—these help justify the new price.

Tenants appreciate when landlords are willing to negotiate or explain rather than issue blanket hikes.

5. Keep Everything Documented

Protect yourself legally and ensure clarity by keeping all paperwork organized:

• Copy of the rent increase notice

• Proof of delivery (email read receipts, certified mail, or tenant signature)

• Any correspondence regarding the increase

• Notes from any verbal discussions or agreements

Pro Tip: If the tenant agrees to the increase, have them sign an acknowledgment form for your records.

6. Think Strategically About Timing

The timing of your rent increase can significantly impact tenant retention and occupancy rates.

• Avoid mid-winter hikes, when tenants may be less likely to move.

• Spring and summer are prime rental seasons in St. Louis—ideal for turnover if tenants don’t renew.

• Give tenants enough time to plan whether they intend to renew or leave.

7. Retain Good Tenants by Balancing Fairness and Profit

Your best tenants are the ones who:

• Pay on time

• Maintain your property

• Communicate openly

Sometimes keeping a great tenant at slightly below-market rent is more profitable than having a vacant unit and turning over the property. Evaluate the cost of turnover vs. the potential revenue gain from a rent increase.

Handling rent increases in St. Louis doesn’t have to be complicated. At Hermann London, we understand the complexities of managing rental properties in St. Louis. Whether you’re a seasoned landlord or just getting started, our team of experienced realtors is here to guide you every step of the way—from pricing strategy and lease structuring to tenant communications and property management.

Let us help you maximize your rental income while keeping your tenants happy and your investments secure.