When a Tenant Challenges Your Rent Increase A rent increase is more than just a new number. It's a test of your entire process. You've sent the formal notice. You've given proper notice. You've explained your reasoning. And then your tenant responds: "I don't think this increase is fair. I'm not paying it." Now you're in a difficult position. If you can't defend your increase with clear, evidence-based reasoning, you're vulnerable. The tenant might refuse to pay the increase.