When calculating a rent increase, be sure first to comply with your landlord obligations; this includes any rent control legislation in your jurisdiction and the terms of your lease agreement. Once you've fulfilled your duties as a landlord, you may consider several factors when increasing rent:
The rental market in your area
How frequently you increase the rent
The current rate of inflation
The attitude or behaviour of your tenant
Rent increases are often between 1–5% of the total rent charge. A landlord may choose a smaller increase (1–2%) if they frequently raise the rent and want to avoid unintentionally forcing a reliable tenant out. Alternatively, a landlord may choose a larger increase (3–5%) to match the rental market in the area or to offset costs caused by an unruly tenant. Keep in mind that some jurisdictions do not allow landlords to raise the rent as a retaliatory action against a tenant. For more information on rent increase regulations, refer to your local landlord and tenant board.