How many days notice to give for 12-month tenant rent increase?
Hi guys,
I am closing on a 4-unit multi-family on July 11th with 3 existing tenants with written lease agreements. All of their leases expire at the end of July. How many days' notice am I required to give them to let them know that rent is increasing?
I spoke with a property manager that said I am required to give 45 days' notice, while HB21-1121 - Residential Tenancy Procedures says 60 days' notice without a written lease agreement.
https://leg.colorado.gov/bills...
I am planning to extend a month-to-month lease so the tenants have the option of searching for other units if they don't agree with the price increase. Thank you in advance.
It sounds like they have a written lease, so your PM should be correct. I like that you're giving them the MTM option as well! And congrats on the newest acquisition!
Quote from @Justin Moy:
It sounds like they have a written lease, so your PM should be correct. I like that you're giving them the MTM option as well! And congrats on the newest acquisition!
Thank you Justin! Just to be clear, the existing written leases do not state that there needs to be a 45 days notice for a rent increase. The property manager I spoke with does not manage any of my properties. I'm curious where he/you are getting the 45 days' notice required for a rent increase? Thank you in advance!
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
It doesn’t matter if the leases say 45 days, 0 days or don’t talk about it. The law is the law. The law doesn’t say 60 if the lease doesn’t talk about it, it says if there isn’t a lease. Although if you don’t own it before their leases expire and the current owner doesn’t extend their lease, then they will be “without a lease” and the 6o days should apply.
Why not give 90 days to these long term tenants, especially if they will be MTM by the time you buy it, ro worst case< the end of July. Most of them will know within 24 hours if they plan to stay. Your state’s laws will also say how much notice they have to give if they plan to stay after their lease expires and becomes MTM. If you plan to manage the properties these are all things you should research before you own it. Breaking one of these laws will cost you more than a PM.
Ps. Plan on raising the rents at lest $400/mo to break even on the vacancy and the make ready within a year. In case the new tenants move out again and you’re back to having to raise the rents again to pay for the new vacancy and make ready next year. You could easily lose money raising the rent $200/mo.