Renewal at undefined 'market rate'
'Market rate' without definition lets the landlord raise rent to whatever they claim the market is. Ask for a cap or reference comps.
Did this answer your question?
Is this clause in your lease?
Upload your lease and we'll flag this clause (and every other red flag) in 30 seconds — free.
What it actually means
Market rate is subjective. Without a reference (e.g., HUD Fair Market Rent, average of 3 comps), the landlord has unlimited discretion.
Negotiate: 'market rate as determined by [specific index]' or 'not to exceed X%' gives you protection.
What it looks like in a lease
"Upon renewal, Rent shall be adjusted to the then-current market rate as determined by Landlord."
What to watch for
- No cap
- No dispute mechanism
How to negotiate it
'Can we define market rate as the lower of: (a) 5% increase, or (b) HUD FMR for this area?'
When it crosses into a red flag
- Landlord's sole determination
- No reference index
Frequently asked questions
Can I dispute their market rate?
Without a defined process, you can only negotiate or move. Build in a dispute clause upfront.
Want to know how this works in your specific state? Read the Rent increases during a lease guide, or pick your state from the guide index.
Related clauses
General information, not legal advice. Clauses are interpreted differently across states and courts. For a binding interpretation of your specific lease, consult a licensed attorney in your state.
