In Kentucky, is the only way a landlord can increase their income to raise the rent?

Can a month-to-month tenant be charged a single flat fee rather than raising the rent?

A rose by any other name would still smell as sweet.

What type of fee? Depending on the type of dwelling it MIGHT be possible to pass along the cost of an improvement as a one time fee.

To your point, they have a lot of construction going on...

They are calling it a "month to month status fee".
It was originally 188.00 the next month it's 117.50, it is always in the context of "or renew your lease" with a late fees or eviction threat.

All this makes me think it's shady, are they within their rights?

Well now this is an interesting point. On a month to month lease, then could in effect, raise the rent each month unless there are laws about the frequency of raising the rent.

When the lease expired they were allowed to raise the rent. But to charge a variable monthly fee to initimidate you to sign a new lease does seem shady. Is there a housing board that covers you area you can report this to?

I live in Louisville, and there is something called the Kentucky Housing Corp. Seems more like a HUD branch than a housing board (or is that the same thing?)

Again, shady - coercive, but probably legal?

Jarv, I cannot speak specifically about Kentucky law. I'm in TX and have also owned property in Iowa, Illinois and Nebraska. In all 4 of those states it is legal, and fairly common, for landlords to charge tenants a monthly fee for the privilege of continuing their tenancy on a month-to-month basis. I've even seen lease forms that have a spot designated for such a charge. It seems odd that the fee would change from one month to the next, and I'm used to the fee being more like $40 - $60, not over $100. As you noted... shady, coersive, but probably legal.

HTH
Karla in TX
P.S. As I think about it, I believe I've only seen larger apartment complexes/management companies charge such fees. FYI.

They must really want you locked in a lease.