Dealing with a tenant that does not want to pay rent increase in New Jersey

[Michael Carlson]

I inherited a tenant who was paying $1000 a month which is way below the SAFMR market rate of $2300 for a 2 bedroom Apartment. I offered them a new lease at $1500 a month and the tenant informed me that he would be leaving at the end of the lease. Two months later he has changed his mind and wants to stay until the end of August. They did not want to sign anything so we verbally agreed to this. The day before rent was due they called me to explain that they will not pay more than $1200.From my research the rent increase is conscionable as it is still way below the market rate so the increase is justified.
I'm not sure if I should just take the $1200 and hope they leave at the end of August or if I should start the eviction proceedings. I have already served them with a notice to quit and provided a 60 day notice. Should I start the eviction proceedings? 
 

[Wesley W.]

I'm not familiar with NJ law, but I would move on and issue a notice of non-renewal in writing, and properly served.    Inherited tenants very seldom work out, and he is so far below market that he has "what's fair" anchored at the old rent.  Raising rent will just piss him off and embitter him (sounds like that has already happened).

Hire a lawyer and rip off the band-aid with an eviction if he stays a day longer than the lease.  The money you spend on this now will repay you many times over when you look back on this in a year.  The longer it takes to disentangle yourself from this party, the less profitable and enjoyable this stabilization will be.  He will do everything to hold on to this sweetheart deal and tell you anything you want to hear to delay the inevitable.

Everyone is free to run their business how they wish, but that's what I would do.