Iowa Code ch. 562 § 562.10
Rental value
Operative Text
The holder of the interest succeeding a life estate who is required by section 562.8 or 562.9 to continue a tenancy shall be entitled to a rental amount equal to the prevailing fair market rental amount in the area. If the parties cannot agree on a rental amount, either party may petition the district court for a declaratory judgment setting the rental amount. The costs of the action shall be divided equally between the parties.
Iowa Code ch. 562 § 562.10 governs how rent is determined when a new property owner inherits a life estate and must continue an existing tenancy under sections 562.8 or 562.9. The rule establishes that the applicable rent is the prevailing fair market rental amount for the area, rather than any previously agreed-upon figure. If the landlord and tenant cannot reach agreement on that amount, either party may ask a district court to issue a declaratory judgment setting the rent, with court costs split equally between the two sides.
Plain English — not legal advice.
Under Iowa Code ch. 562 § 562.10, a successor interest holder who is obligated to continue a tenancy is entitled to collect rent at the prevailing fair market rate for the local area. Compliant operators generally document comparable rental rates in the area to support a fair market determination and attempt good-faith negotiation with the tenant before pursuing court involvement. If agreement cannot be reached, the statute provides a clear path to petition the district court for a declaratory judgment, with costs shared equally.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Iowa Code ch. 562 § 562.10 gives tenants the right to have rent set at the prevailing fair market rate when a new owner succeeds a life estate and continues the tenancy — meaning a successor cannot unilaterally impose an arbitrary rent figure. If the parties disagree on what fair market rent is, the statute expressly allows either party, including the tenant, to petition the district court for a declaratory judgment establishing the amount. Tenants who face a disputed rent amount may benefit from gathering local comparable rental data and consulting a tenant-rights organization familiar with Iowa landlord-tenant law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation