Good morning my fellow BPers,
I have a Tenant that decided they will not renew the lease, in our leasing agreement, it automatically renews month to month at market rate. Do I need to get them to sign agreeing to the market rate?
How is the market rate determined because I have seen multiple sources differ on the market rate?
Should I have already included a set price in the lease?
In your state (Virginia), there is no rent control law. So at the expiration of the lease you need only to provide the tenant with 30 days notice of what the new rent amount will be. It does not need to be signed by them. They can either choose to pay the new amount or move out. If they stay but do not pay, you would need to begin eviction proceedings.
I personally hate m-to-m. My leases have a $300 m-to-m fee. This way no one balks when it is time to renew and m-to-m is offered. I often increase the rate because market rates are keeping up with expenses which are rapidly increasing. This allows me to easily renew the lease with an increase because my tenants know from the beginning m-to-m is not an option without a large increase.
Thanks for the response: Kyle and Elizabeth
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