Tenant no responding to rental raise

Tenant no responding to rental raise

Realtor · Western MA · Member since 2022 · 21 posts · 16 votes

Heyy. I'm trying to raise rent to fair market rent for one of my tenants. I have informed her through text and email. And heard no response. I texted again asking if she got my messages and if she had any questions. No response. I also texted if we could set up a time to chat on the phone. No answer. What should I do??

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Account Closed:

Heyy. I'm trying to raise rent to fair market rent for one of my tenants. I have informed her through text and email. And heard no response. I texted again asking if she got my messages and if she had any questions. No response. I also texted if we could set up a time to chat on the phone. No answer. What should I do??


You are making a common mistake of failing to set a deadline.

When I want a response from my tenant, I set a deadline and a consequence for failing to respond.

"Dear Tenant, 

Due to increases in costs, I am forced to increase your rent. Your rent rate is currently $500 below market, but I am willing to keep it below market as an incentive to stay.

Your new rent rate will be $1,650 effective June 1st, and I require you to take responsibility for the heat. This rate is based on a signed one-year lease term.

I need you to agree to this change by signing a new lease no later than April 20, 2024. If I do not have a signed lease with you by that date, then I will accept that as your notice of termination and  expect you to move out no later than 11:59 p.m. on May 31, 2024."

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    Is she on a lease or month to month?  Look up your local laws and see how much notice you have to give her.  Tell her if she wants to renew her lease, the rent will be $X and when you need her to give you her decision (a minimum of 30 days before the lease expires).  If she's month to month, same thing-giver her notice that her rent is going up to $X effective June 1 2024 and she needs to tell you no later than May 1 2024 if she's staying or going.  Again check your local laws for how much notice is required.

    I'd also look at how much the rent is increasing and if it is worth a vacancy.  Eg $50 a month for a vacancy on a place that rents for $1800 a month may not be worth it.

  • Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    2y

    @Kaitlin Scutari does your lease mention how to give notice? You may have to send USPS certified or post on door stating rent increase beginning x date, mine usually includes an addendum extending lease term one year at x rate requiring signature. Usually I send notice 90 days before lease end to give them time to see they’re not going to find anything better at new rent or they can give notice to move. I start with email/text but will send certified letter if they don’t respond within a week as I have to give 60 days notice if I want them out, which I would do if no response.

  • Realtor · Western MA · Member since 2022 · 21 posts · 16 votes
    2y

    The lease only states how the tenant should give notice- which is 30 days- "
    "To give thirty days written notice by registered mail or hand delivered to management prior to vacating said premises and to permit prospective tenants the opportunity of reasonable inspection"
    This was the lease the former owner used- so I just adopted it and was going to implement the standard Massachusetts lease with the new signing (gotten here on Bigger Pockets). 

    I'm giving more than 30 days at the moment. And she IS month to month- So I guess I'll give this week to ignore me more and then at the end of the week I will let her know she needs to inform me no later than May 1, 2024 if she is staying or going. 

    Her rent is WAY below market value- they pay 1300 for a 3 bed- heat included. So fair market is 1766 without heat- so I'm upping her rent to 1750 (cutting them a little break). They also have a garage and basement access...and trash removal etc. Also I put in all new appliances for them lol.

  • Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    2y

    If your lease is silent on it, it would default to your local or state statute.  I would research that and see what the requirements are.  In many locations, the important aspects are method of notice and the time between the notice and the rate going into effect.

    As others have said, I would double check the above, but then send two copies of the notice - one first class and one certified.  That way, if they are not BOTH returned you have a reasonable assumption that they have been notified.  (Again, check your local laws to make sure this is sufficient.)

    Also - unless the laws under which you operate say otherwise - you are "notfying" them of the increase.  You do not need them to agree.  You are changing the terms of the contract with proper notice.  If that doesn't work for them, they are free to give a norice to vacate.  (Practically, expect an eviction proceeding with this situation, and be pleasantly suprised if it doesn't come to that.)

    Lastly, make it a point to make each mistake only once, so tighten up your leases moving forward so everything is crystal-clear for the next time.

    Good luck!

  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    Was it a formal letter to increase rent or did you just state that you're going up on the payment? Another way is for you to serve it via Certified Mail to have her confirm receipt of it. If she doesnt respond the answer is no. 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Account Closed:

    Heyy. I'm trying to raise rent to fair market rent for one of my tenants. I have informed her through text and email. And heard no response. I texted again asking if she got my messages and if she had any questions. No response. I also texted if we could set up a time to chat on the phone. No answer. What should I do??


     Knock on her door, if no response, text and sent her a letter you are not renewing her lease, watch how fast she responds. 

  • Realtor · Western MA · Member since 2022 · 21 posts · 16 votes
    2y

    It was not a formal letter. I sent a text (how we typically communicate) and then I sent the new lease to review through DocuSign. So I should send a formal letter for increase in rent along with the new lease to sign via Certified Mail and another one First Class?

    Local law states that rents can be raised with 30 days notice or frequency of rental payments. They pay month to month. 

  • Realtor · Western MA · Member since 2022 · 21 posts · 16 votes
    2y
    Quote from @Bob S.:
    Quote from @Account Closed:

    Heyy. I'm trying to raise rent to fair market rent for one of my tenants. I have informed her through text and email. And heard no response. I texted again asking if she got my messages and if she had any questions. No response. I also texted if we could set up a time to chat on the phone. No answer. What should I do??


     Knock on her door, if no response, text and sent her a letter you are not renewing her lease, watch how fast she responds. 


     Truth. I can get over there when I think they'll be home to hand deliver and talk. She texts me all the time with anything that's happening on the property and I always respond promptly. So rude. 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Account Closed:

    It was not a formal letter. I sent a text (how we typically communicate) and then I sent the new lease to review through DocuSign. So I should send a formal letter for increase in rent along with the new lease to sign via Certified Mail and another one First Class?

    Local law states that rents can be raised with 30 days notice or frequency of rental payments. They pay month to month. 


     NO, do what I mentioned right now, I bet she calls you back within 2 hours. I am not sure how long its been since no response. But if more than 3, 4 days, I would also put a 24 hour notice on her door. 

    Good luck 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Account Closed:
    Quote from @Bob S.:
    Quote from @Account Closed:

    Heyy. I'm trying to raise rent to fair market rent for one of my tenants. I have informed her through text and email. And heard no response. I texted again asking if she got my messages and if she had any questions. No response. I also texted if we could set up a time to chat on the phone. No answer. What should I do??


     Knock on her door, if no response, text and sent her a letter you are not renewing her lease, watch how fast she responds. 


     Truth. I can get over there when I think they'll be home to hand deliver and talk. She texts me all the time with anything that's happening on the property and I always respond promptly. So rude. 


     So, if she sends a " repair request" ignore her see how she likes it. Once tenants think your need them, well that's when they will take advantage of you.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Account Closed:

    Heyy. I'm trying to raise rent to fair market rent for one of my tenants. I have informed her through text and email. And heard no response. I texted again asking if she got my messages and if she had any questions. No response. I also texted if we could set up a time to chat on the phone. No answer. What should I do??


    You are making a common mistake of failing to set a deadline.

    When I want a response from my tenant, I set a deadline and a consequence for failing to respond.

    "Dear Tenant, 

    Due to increases in costs, I am forced to increase your rent. Your rent rate is currently $500 below market, but I am willing to keep it below market as an incentive to stay.

    Your new rent rate will be $1,650 effective June 1st, and I require you to take responsibility for the heat. This rate is based on a signed one-year lease term.

    I need you to agree to this change by signing a new lease no later than April 20, 2024. If I do not have a signed lease with you by that date, then I will accept that as your notice of termination and  expect you to move out no later than 11:59 p.m. on May 31, 2024."

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  • Realtor · Western MA · Member since 2022 · 21 posts · 16 votes
    2y
    Quote from @Bob S.:
    Quote from @Account Closed:

    It was not a formal letter. I sent a text (how we typically communicate) and then I sent the new lease to review through DocuSign. So I should send a formal letter for increase in rent along with the new lease to sign via Certified Mail and another one First Class?

    Local law states that rents can be raised with 30 days notice or frequency of rental payments. They pay month to month. 


     NO, do what I mentioned right now, I bet she calls you back within 2 hours. I am not sure how long its been since no response. But if more than 3, 4 days, I would also put a 24 hour notice on her door. 

    Good luck 


     What would a 24 hr notice be? It's been since Thursday of no response.  Yeah, I can swing up there after work tonight... 

    and thank you

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Account Closed:
    Quote from @Bob S.:
    Quote from @Account Closed:

    It was not a formal letter. I sent a text (how we typically communicate) and then I sent the new lease to review through DocuSign. So I should send a formal letter for increase in rent along with the new lease to sign via Certified Mail and another one First Class?

    Local law states that rents can be raised with 30 days notice or frequency of rental payments. They pay month to month. 


     NO, do what I mentioned right now, I bet she calls you back within 2 hours. I am not sure how long its been since no response. But if more than 3, 4 days, I would also put a 24 hour notice on her door. 

    Good luck 


     What would a 24 hr notice be? It's been since Thursday of no response.  Yeah, I can swing up there after work tonight... 

    and thank you


     you are going into the property , 

  • Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Wait to see if she pays it. Could be pissed and may not care to talk to you, especially if she doesnt have it.  If its not there on rent day then you can work on the default process. When all the interest rates on my lines of credit, credit cards and everything else went way up at once I wasnt happy either. lol

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y
    Quote from @Mark Cruse:

    Wait to see if she pays it. Could be pissed and may not care to talk to you, 

    This was my thought. A raise of $450 a month is a LOT.....regardless of whether it is fair or not. That's a lot of extra change to come up with every month for most people nowadays. I saw a news story last week that 50% of people currently have trouble making their monthly housing payment.

    Not saying that you shouldn't raise the rent, but this tenant may not be able to afford it, plain and simple. So do as the others have said but get ready to get in there and fix it up and find a new tenant.


  • Derreck WellsPro Member
    Specialist · Pelham, NH · Member since 2013 · 544 posts · 269 votes
    2y

    Start the eviction process as soon as she misses a payment.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y
    Quote from @Account Closed:

    The lease only states how the tenant should give notice- which is 30 days- "
    "To give thirty days written notice by registered mail or hand delivered to management prior to vacating said premises and to permit prospective tenants the opportunity of reasonable inspection"
    This was the lease the former owner used- so I just adopted it and was going to implement the standard Massachusetts lease with the new signing (gotten here on Bigger Pockets). 

    I'm giving more than 30 days at the moment. And she IS month to month- So I guess I'll give this week to ignore me more and then at the end of the week I will let her know she needs to inform me no later than May 1, 2024 if she is staying or going. 

    Her rent is WAY below market value- they pay 1300 for a 3 bed- heat included. So fair market is 1766 without heat- so I'm upping her rent to 1750 (cutting them a little break). They also have a garage and basement access...and trash removal etc. Also I put in all new appliances for them lol.


     Raising the rent $450.....that's a recipe for disaster. I'm not surprised they are not responding. What I suspect is they will not be paying rent and you will end up needing to evict.  

    In the future use more common sense. Huge rent raises like this 35% raise will just blow up in your face.

  • Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    2y
    Quote from @Bruce Woodruff:
    Quote from @Mark Cruse:

    Wait to see if she pays it. Could be pissed and may not care to talk to you, 

    This was my thought. A raise of $450 a month is a LOT.....regardless of whether it is fair or not. That's a lot of extra change to come up with every month for most people nowadays. I saw a news story last week that 50% of people currently have trouble making their monthly housing payment.

    Not saying that you shouldn't raise the rent, but this tenant may not be able to afford it, plain and simple. So do as the others have said but get ready to get in there and fix it up and find a new tenant.


     Wow, I didnt know it was that much. That would piss any person off even in the high income realm. I´ve only seen increases like that when they wanted all the tenants to leave for one reason or another. I know people who did this so they could empty the building for condo conversions. For inherited tenants most gradually raise it slightly over time to get it to market. I picked up a turn key with low rent once and I knew if I went rogue Id have zero tenants. This kind of increase mixed with some low income mentality can lead to  not so pleasant occurrences. Looks like they have no intention on paying that or respond to anything. Hopefully she will just leave in peace while only telling landlord to kick rocks. 

  • Realtor · Western MA · Member since 2022 · 21 posts · 16 votes
    2y

    Yeah, it's a big raise- although it's a two income household.... I just had tenants rent upstairs for more than what I'm making them pay... for one less bedroom. I mean, even if she's upset- she could come back and ask to negotiate or talk about it instead of ghosting--

    My taxes were raised adding an extra 200 per month. The heat this winter was out of control. I would drive by and see their windows open .... wasting the heat. 

    If they don't want to pay - then good luck to them finding something cheaper. Because there's nothing. 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Account Closed:

    It was not a formal letter. I sent a text (how we typically communicate) and then I sent the new lease to review through DocuSign. So I should send a formal letter for increase in rent along with the new lease to sign via Certified Mail and another one First Class?

    Local law states that rents can be raised with 30 days notice or frequency of rental payments. They pay month to month. 


     She is not responding, get aggressive. I suggest you do what I mentioned. 

    Good luck 

  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    2y

    @Account Closed do they have control of the heat or do they have to open windows to cool it down when it is too warm. Opening windows and wasting heat if they can control heat is... if they are totally inconsiderate that way a large rent increase is in order partly to cover increased and out of control heat expense.

  • Realtor · Western MA · Member since 2022 · 21 posts · 16 votes
    2y
    Quote from @Jeff S.:

    @Account Closed do they have control of the heat or do they have to open windows to cool it down when it is too warm. Opening windows and wasting heat if they can control heat is... if they are totally inconsiderate that way a large rent increase is in order partly to cover increased and out of control heat expense.

    Yes, they have control over the heat. When I mention the windows to them, they say that they have the heat off... but there's no way.... middle of winter... They just smoke weed inside and have kids... so their window is to air it out. I'm very much sure of this. 
  • Member since 2024 · 19 posts · 16 votes
    2y

    I have raised rents multiple times.

    First I never raise rents more than $100 a year if I am the current owner of the property. If I have just purchased the property and leases are getting renewed then I'll send everyone a personal letter introducing myself, my property manager, and document what the current market rate is for their unit with documentation to prove it. (Just google it.)

    In one case which follows closely with your situation, I met with them personally and let them know that I'm their new landlord and this is your property manager. You have lived here for 5+ years and in that time you have never had a rate increase. Your current rent is $550 and the market rate is $800 for a two bedroom apartment. In reality you have a semidetached house with your own driveway Rents for two bedroom houses for this area are $1000 to $1500 depending on features and comps etc. Your rent is going to $900/mo. I simply cannot keep rent that low and your neighbors in the building right next door are all going from $500 to $600. He didn't like it but he is still there as a tenant. He did make a comment to my property manager that he checked around and still could not find a place as nice as where he was staying for less than $1100/mo so he was fine with it even if he didn't like it.

    I have two other units that have not had a rent increase for a while because I was pretty sure they can't afford it. (Better to keep a paying tenant than have to find a replacement.) They are $100 to $150 below market rate now and they are going to see $50 increases over the next few renewals.

  • Realtor · Western MA · Member since 2022 · 21 posts · 16 votes
    2y
    Quote from @Andrew Rees:

    I have raised rents multiple times.

    First I never raise rents more than $100 a year if I am the current owner of the property. If I have just purchased the property and leases are getting renewed then I'll send everyone a personal letter introducing myself, my property manager, and document what the current market rate is for their unit with documentation to prove it. (Just google it.)

    In one case which follows closely with your situation, I met with them personally and let them know that I'm their new landlord and this is your property manager. You have lived here for 5+ years and in that time you have never had a rate increase. Your current rent is $550 and the market rate is $800 for a two bedroom apartment. In reality you have a semidetached house with your own driveway Rents for two bedroom houses for this area are $1000 to $1500 depending on features and comps etc. Your rent is going to $900/mo. I simply cannot keep rent that low and your neighbors in the building right next door are all going from $500 to $600. He didn't like it but he is still there as a tenant. He did make a comment to my property manager that he checked around and still could not find a place as nice as where he was staying for less than $1100/mo so he was fine with it even if he didn't like it.

    I have two other units that have not had a rent increase for a while because I was pretty sure they can't afford it. (Better to keep a paying tenant than have to find a replacement.) They are $100 to $150 below market rate now and they are going to see $50 increases over the next few renewals.


     yes that's definietly similar. I lost about 20k last year with an eviction of a non paying tenant, paying heat, and rehabbing the unit. I just don't want to be that tight anymore and wanted to get everyone on the fair market rent. I just want to talk it out with her. :( 

  • Member since 2024 · 19 posts · 16 votes
    2y
    I think you should have stopped by and spoke with her face to face first.
    Everything documented, proving the market rate you name it, listing the comps and property features.

    Next I would have increased the rent over two years. Starting with the new renewal date. If you're going from $1000 to $1500 then the first renewal would have been $1250, the next year go to $1500.

    My PM does most rent increases face to face as well. A few times she has raised rents without consulting me because she knows how I work. I like it when I get told she got a new tenant in and oh btw, I raised the rent $100/mo too!
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