15 May How to Handle Rent Increases: 5 Essential Tips for St. Louis Landlords to Boost Profits

Raising rent is often necessary to keep your property profitable, but knowing how to handle rent increases effectively can make all the difference between keeping good tenants and facing vacancies. As a landlord in St. Louis, understanding the legalities, market conditions, and tenant communication best practices is key to a smooth rent increase process.

This comprehensive guide will walk you through how to handle rent increases properly in St. Louis, helping you protect your investment while maintaining strong landlord-tenant relationships.

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

Legal Considerations in St. Louis

1. Review the Lease Agreement
   Always start by reviewing your current lease terms. Rent increases can typically only be applied at the end of a lease term or with proper notice in periodic agreements.

2. Know the Law
   While St. Louis doesn’t have rent control laws, landlords must still follow Missouri state regulations. This means providing at least 30 days’ written notice for any rent increase on a month-to-month lease.

3. Set Reasonable Increases
   Rent hikes must be justifiable. Excessive or poorly explained increases can lead to tenant turnover or disputes. Make sure the increase aligns with comparable properties in your neighborhood.

How to Handle a Rent Increase the Right Way

Step 1: Evaluate the Local Market

• Research similar rentals in your area (St. Louis neighborhoods like The Hill, Soulard, or Central West End).

• Take note of factors like size, amenities, and location to support your increase with data.

Step 2: Draft a Proper Notice

• Include:

  • The current rent

  • The new rent

  • The effective date of the increase

  • Reason for the change (optional but recommended)

• Deliver it via certified mail, email (if permitted), or hand-delivery with acknowledgment.

Step 3: Communicate Transparently

• Be clear and respectful when informing your tenant.

• Share the rationale: increased taxes, rising maintenance costs, inflation, or improvements to the property.

Step 4: Be Open to Dialogue

• Good tenants are worth keeping. If a tenant expresses concern, be willing to listen or negotiate.

• Flexibility can lead to longer lease renewals and reduced turnover costs.

Step 5: Document Everything

• Keep written copies of the rent increase notice and any tenant responses.

• Documentation protects you in case of future disputes or legal issues.

Pro Tips for St. Louis Landlords

• Avoid sudden or large increases. Gradual and consistent changes are better received.

• Make property improvements visible. Tenants are more likely to accept increases when they see upgrades.

• Retain quality tenants. A slightly lower rent with a long-term tenant is often more profitable than frequent turnovers.

Conclusion

Raising rent doesn’t have to mean raising tensions. When handled professionally, rent increases are an opportunity to reaffirm your commitment to providing quality housing while ensuring your investment stays profitable.

If you’re a St. Louis landlord navigating the rental market, Hermann London is here to help. From rental pricing strategy to lease management and tenant communication, our experienced team supports every aspect of your property management journey.

Contact Hermann London today to maximize your rental property’s potential with confidence, clarity, and local expertise.