Raise rent now or wait for repair completion?

Question

Hi all!  I have a tenant that just reported a 'minor' leak in the shower.  I sent a plumber out immediately to check it out and repair but it had obviously been going on for a very long time including a large water stain with mold on the ceiling below.  There is severe water damage to the subfloor to the point that the tub is rocking.  I'm replacing the tub/shower and shoring up the subfloor as emergency work.  This is the 2nd time that she has failed to report water issues and let them go until they required a major repair even though the lease clearly states her responsibility to report them immediately.

I know some of this is on me for not doing regular inspections but my question is this:  She is due for a rent increase and is actually well below market rent.  I'm looking at increasing rent by about $135 (~9%).  I'm ok with her leaving.  I'm trying to decide if I send her the notice now (while the repair work is going on) or wait until the repairs are done.  I don't want anything to impede the contractor work (should be starting in the next week or so) but I was hoping to get the 30 day notice in so it would go into effect by 7/1.   Thoughts?

Theresa Harris · Answer

Forget rent increase, get her out of your house.  Do not renew her lease and give her notice once the work is done and it is the required amount of time (eg some places you have to give 30 days' notice, others 60).

Jules Aton · Answer

Not what you asked but I don't think I would continue to rent to someone like this unless your property isn't a desirable location and she is as good as you can get.

David Peschio · Answer

I am with the others - time to look for a new tenant.

Drew Sygit · Answer

How much have these two failures to report water leaks cost you?

Why would you renew a lease for someone costing you this much in preventable expenses?

Denise B. · Answer

Thanks Brian - that was my concern too. I’m leaning towards holding off until the work is done and target 8/1 as the effective date.

Hasan Gabareen · Answer

Honestly, this sounds like more of a tenant-risk issue than a rent increase issue at this point. Failing to report water problems twice, especially to the point of subfloor damage, is a major red flag.

I’d focus on getting the repairs done first and then decide where to go with the tenant, although the others have mostly nailed it — she’s becoming a liability to you. Below-market rent only works when the tenant is also helping preserve the property.

Stephen Delahoussaye · Answer

Send the notice now. Don't wait.

I manage about 20 doors in Nashville and this exact scenario comes up more than you'd think. Here's my take: the rent increase and the repair are two separate business decisions. The increase is justified by market rate, not by the repair. Tying them together in your head (or the tenant's head) only creates confusion.

A couple things I'd add from the PM side. First, document the failure to report. Take photos of everything, save the plumber's notes, and put a written notice in her file referencing the lease clause about reporting maintenance issues. That paper trail matters if this goes sideways later. Second, I'd seriously consider starting quarterly inspections on that unit going forward. We do them across our portfolio and they catch small problems before they turn into subfloor replacements.

On the timing, a 30 day notice now gets you to 7/1 which is clean. The contractor being on site doesn't change the tenant's obligation to pay market rent. If anything, you fixing the unit while keeping rent below market has been a gift. A 9% bump when she's already well below comps is more than reasonable.

One more thought. If she does leave over the increase, you'll be turning a freshly repaired unit at market rate. That's not a bad outcome either.

G. Brian Davis · Answer

Id focus first on getting the repairs done safely and without delays. Sending a rent increase notice while contractors are in and working could complicate access or create tension. You can prepare the notice now, but I’d deliver it once the work is underway or just completed.

Raise rent now or wait for repair completion?

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