How to increase the rent: Legally correct and without conflicts

A practical guide to raising the rent. Statutory limits, inflation clause, communication with tenants and sample notices.

Inflation is rising, energy prices are rising, real estate values are changing - and your rent has stayed the same for the third year. It is a legitimate landlord's right to raise the rent, but you have to do it right. The wrong procedure can lead to disputes, legal battles and the loss of a good tenant.

In this article I will show you how to increase the rent legally, fairly and without unnecessary conflicts.

Legal framework

Legal regulation

Rent increases are regulated by the Civil Code (§ 2249 et seq.). The law protects tenants from unreasonable increases.

When you can increase

Unilateral increase: Only if the contract allows it or if you meet the legal conditions.

By agreement: Any time if the tenant agrees.

Limits

Legal limit: The aggregate statutory limit over three years and comparable customary rent constrain the proposal; 20% is not an annual entitlement or guaranteed increase.

Local customary rent: The rent after the increase must not exceed the usual price in the place and time.

Ways to increase the rent

1. Agreement with the tenant

Best option: Agree on a new rent and conclude an addendum to contract.

Advantages:

  • No upper limit
  • Fast
  • Maintains good relations

Procedure:

  1. Prepare proposal and justification
  2. Make an appointment
  3. Discuss and negotiate
  4. Conclude a written amendment

2. Unilateral increase (§ 2249 OZ)

When to use: The tenant does not agree to the agreement, but you have the right to increase.

Conditions:

  • Written proposal from the landlord
  • Justification (comparison with the local standard)
  • Within the aggregate statutory limit over three years and subject to comparable customary rent
  • The resulting rent does not exceed the usual

Procedure:

  1. Find out the usual local rent
  2. Prepare a written proposal
  3. Deliver to tenant
  4. The lessee has 2 months to comment
  5. If they do not agree, you can go to court

3. Inflation clause in the contract

Principle: The contract contains provisions on automatic increases according to inflation.

Advantages:

  • Automatic
  • Predictable
  • No negotiation

Formulation: "The landlord is entitled to unilaterally increase the rent once a year by half inflation expressed by the increase in the consumer price index announced by the CZSO for the previous calendar year."

4. Increase when the contract is extended

Situation: The fixed-term lease ends, you are negotiating a new contract.

Option: New contract = new conditions including higher rent.

Local customary rent

What is

The rent that is usually paid for comparable apartments in the same location.

How to find out

Sources:

  • Price map of rents
  • Advertisement of similar apartments
  • Expert opinion
  • Real estate agencies

What to compare

Parameters:

  • Location (street, district)
  • Apartment size
  • Condition and equipment
  • Floor and elevator
  • Balcony, parking

Increase procedure

Step 1: Analysis

Find out:

  • Current rent amount
  • Date of last increase
  • Local customary rent
  • Content of the rental agreement (inflation clause?)

Step 2: Calculation

Calculate:

  • Maximum possible increase (20% limit)
  • Target rent (do not exceed usual)
  • Realistic increase

Example:

  • Current rent: Kč 12,000
  • Locally usual: 15,000 Kč
  • 20% limit: Kč 14,400
  • Realistic proposal: Kč 13,500

Step 3: Preparation of proposal

Content:

  • Current rent
  • Proposed rent
  • Effective date
  • Justification (comparison, inflation)
  • Deadline for statement

Step 4: Communication

Face-to-face meeting (recommended):

  • Explain reasons
  • Show comparison
  • Offer agreement

Written proposal:

  • Formal document
  • Deliver demonstrably
  • Keep a copy

Step 5: Tenant's response

Agrees: Conclude an addendum to the contract.

Disagrees: Consider compromise or go to court.

Does not respond (2 months): Presumed to agree by law.

Communicating with the tenant

How argue

Objective reasons:

  • Inflation and rising costs
  • Comparison with the market
  • Real estate investment
  • Increase in taxes and fees

What doesn't work:

  • "I need more money"
  • "They are raising prices everywhere"
  • "I have the right"

Compromise solution

Options:

  • Gradual increase (this year 10%, next year 10%)
  • Contract extension in exchange for higher rent
  • Investment in apartment (new kitchen = higher rent)

Maintaining a relationship

Tips:

  • Communicate early (not the day before)
  • Be transparent
  • Listen to concerns
  • Look for win-win

Notice template

Rent increase notice

Landlord: [Name, Address]

Tenant: [Name, address]

Apartment: [Apartment address]

Dear Mr./Ms. [name],

in accordance with § 2249 of the Civil Code, I hereby propose to increase the rent for the above apartment.

Current rent: Kč 12,000/month Proposed rent: 13,500 Kč/month Effective date: from 1 [month] [year]

The reason for the proposal is to adapt the rent to the locally customary amount. According to the price map and comparison with similar apartments in the area, the usual rent is 14,000–16,000 Kč/month. If you do not respond within this period, it is assumed that you agree to the proposal.

I am ready to meet with you to discuss the proposal.

S With regards [Signature] [Date]

Common errors

Error 1: Exceeding limits

Problem: Increase by more than 20 % in 3 years.

Consequence: Tenant can challenge in court.

Error 2: Missing justification

Problem: "I raise because I want to."

Consequence: Invalid proposal.

Error 3: Bad form

Problem: Verbal notice.

Consequence: Ineffective increase.

Mistake 4: Unrealistic amount

Problem: Increase above the local norm.

Consequence: Tenant leaves or abatement.

Mistake 5: Poor communication

Problem: No ultimatum explanation.

Consequence: Loss of a good tenant.

Court settlement

When to go to court

If the tenant does not agree and you have the right to increase.

Procedure

  1. Written proposal from the tenant
  2. 2 months to comment
  3. Court action (within 3 months of rejection)
  4. The court will decide on the reasonableness

Risks

  • Legal costs
  • Time (months to years)
  • Uncertain outcome
  • Deterioration of relationship with the tenant

Summary

Before the increase:

  • Check the contract
  • Find out the local prices
  • Do the math limits

When increasing:

  • Prefer an agreement
  • Written proposal
  • Clear justification
  • Sufficient time for the tenant

Communication:

  • Transparency
  • Objective arguments
  • Willingness to compromise
  • Preserving the relationship

raising the rent is your right, but success depends on how you apply it. Fairness and communication will save you disputes - and keep good tenants.

How Grento can help you

Grento tracks rent history and allows you to plan increases with insight into current market prices thanks to AI estimates.

> Czech-law scope and editorial note: Legal, tax, accounting, tenancy, service-charge, condominium, metrology, insurance and data-protection statements in this article refer to the Czech Republic and the rules effective for the relevant date. Figures and examples are illustrative, not legal or tax advice. Verify current rules with the relevant Czech authority or a qualified adviser.

> Rent-increase clarification: A fixed percentage is not an annual entitlement or guaranteed increase. Under Czech Civil Code §§ 2248-2249, distinguish contractual indexation from the statutory proposal route, comparable customary rent, the aggregate statutory limit and comparison period, the tenant's response and any court procedure. Silence is not acceptance.