Sent letter 60 days prior addressing utilities

[Ron Tafoya]

Hi I sent a letter 60 days before lease renewal stating "tenant will pay all utilities" starting new lease agreement. I get a text today after dropping of new agreement asking if I was raising rent. Long story short tenant thought I was going to basically lower rent if she paid all utilities to compensate for the utilities she is going to be paying. Letter stated no such thing or even eluded to that. Two of the utilities are bi monthly and two are monthly. Dollar wise it equates to 119$ per month over 12 months. How should I proceed? Stick to my guns or? Thanks Ron.

[Chris Herbert]

@Ron Tafoya when you approach a rent increase or a utility responsibility change, you should always consider the worst case scenario and all the costs associated if the tenant decides that the increase is too much decides to move. What is your vacancy rate if they decide to move, how many days will the property likely be vacant? How much time will you spend and what are your turn costs? Sometimes these costs justify the rent or utility increase, other times they are not worth losing the tenant over. And if you do have to re-rent it will you be able to increase the rent to market rate and/or not include the utilities and remain competitive in you area with what others are doing? A lot to consider, in your case, I would stick to my guns as you've already made your decision and you do not want to come across as a push over for anything in the future (much like being firm on late fees). Your letter to the tenant clearly explained the change in terms.