Any tip is welcome.
I rented my home to a young couple 4 years ago with one dog. And now they have 3 dogs, 1 cats and 2 small girls. When the lease was done and signed it was for only the husband/wife and one dog. We haven't done any other lease since that time so they have been paying month to month. Now I realized that I had given them a long free ride and I must do a new lease factoring how large the family have increased. I had been raising the rent each year by 5% and never had a problem with them. SO here are my questions:
1. Each time their payment arrive is after the 5th or 6th of the month even when the lease clearly said to be paid on the 1st of each month. So can I write a new lease saying that the rent must be pay in full on the 1st of each month and if check arrive after the 1st a penalty of $75 will be taken off their deposit and is that legal at all? OR just send then a bill right away for $75.00?
2. They are now paying $2,800.00 per month but I feel that they should be paying more. So how much more should I charge since the family has grown plus all the pets?
After their first child was born there had been more repair done at my home which I always pay for and there is more tear/wear/damage with all the walking running on the wood floor and carpet and the backyard. Plus all pets pee and poop inside homes.
Does a bird in the hand beat 1.25 in the bush?
^i second that.
but if u keep a bird in ur hand too long, it gonna pee and poop up a stench
wanna be left clean and empty handed?
Basically, they are just constantly paying 5 days late, but they pay. it might be that their payday clears the bank is on the 1st or 3rd, but at least they never miss a payment. You could raise the rent for your wear and tear, explain why, come to a negotiation. on the bad side, your next tenant might be a nightmare.
maybe every 5th or the 6th works better for them than the 1st.
yea, at least its consistently monthly payments.
Getting paid on the 5th or 6th sucks, but if I had tenants who were otherwise great, I'd deal with that.
You might run into fair housing law issues if you try to charge them more because they have kids. (Although I am not a lawyer, and I could be wrong here.) You could charge them more for having more pets.
You mentioned that you feel like they should be paying more. Is that just because of the kids/pets, or are comparable units in the neighborhood renting for more?
Join the Largest Real Estate Investing Community
Basic membership is free, forever.