Inherited tenant lease renewal

North NJ · Member since 2015 · 100 posts · 28 votes

Irvington NJ

Hello. I need some clarity on lease procedures for an inherited month to month tenant. Ive read up on New jersey landlor/tenant laws and truth in renting but im not clear if theres differences being the new owner. Tenant was month to month when i bought the property and I've decided i will keep her as she has been paying her rent on time, if not early. After closing she did express that she'd be willing to renew her lease, and I told her that rent would increase. Is renewal procedure and rent increase the same as if I was the original lessor? Is a renewal based on the old lease with revisions? Or can it be completely different? I will be increasing rent by $100-$200 and adding a more detailed rider.

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Quote from @Rashad Ellis:

You don't need to "terminate" the old lease; you just have to give at least 30 days notice of changes to the old lease, which would include creating a new lease.

My recommendation is a new lease with the terms you are comfortable with. The terms on the old lease do not matter. You can change the rent, continue on a month-to-month basis or lock them in for a year, add/remove terms, whatever.

There's a lot of free information online. For example: https://www.state.nj.us/dca/di...

Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.

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Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,

Depending on local laws, you should definitely set up a new Rental Agreement, based on your desired terms and conditions. Even though currently month-to-month, you should "terminate" the existing agreement with proper local notice; and get new, complete, applications from all adults including current income/savings documentation, and SS#. Once you process the application and actually approve her, you complete a new Rental Agreement package and go through the review/signing procedure. If there are dramatic changes in terms from the prior agreement, they should be discussed early on to ensure she does want to stay.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Rashad Ellis:

You don't need to "terminate" the old lease; you just have to give at least 30 days notice of changes to the old lease, which would include creating a new lease.
My recommendation is a new lease with the terms you are comfortable with. The terms on the old lease do not matter. You can change the rent, continue on a month-to-month basis or lock them in for a year, add/remove terms, whatever.
There's a lot of free information online. For example: https://www.state.nj.us/dca/di...
Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.
The DIY Landlord Book4.7243 Reviews
Website View Page
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Shawn McenteerBusiness Member
Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
3y
@Rashad Ellis you can raise rents on month to month assuming rent control rules allow you to and you do not exceed amount rent control puts in place. Irvington can be tough with these laws. Smart tenants know what you can and cant do so you may want to check local laws before hand. Tenant turnover can sometimes be the easiest way to raise rents in NJ.
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