The short answer is, yes. If you do not have a written lease agreement and are paying month-to-month with no specific term, either party (landlord or tenant) can terminate the agreement by giving no less than 15 days notice to the other party prior to the end of the monthly period. If your landlord has not increased your rent in 2 1/2 years, I would consider yourself fortunate as I am aware that rental prices have increased significantly in the past four years.
It appears the landlord is simply trying to recover his or her expenses. However, if you would like to lock in the rent amount with no short term increases, you might consider negotiating a long term lease with your landlord. Alternatively, if you believe the new rental amount is above market value, you can terminate the rental by providing notice to the landlord and find a better priced rental property.
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I agree with my colleague. A Lease will govern the relationship between the landlord and tenant. Most month-to-month lease agreements allow the landlord to increase the rent with proper notice.
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