***FIRST TIMER! FIRST TIMER!***
I have a lease agreement with a tenant that I inherited in August 2014. He's a month to month and the lease is between the Tenant and Me (personally). I was hoping to get some help on what my options are for getting the lease agreement between the Tenant and our LLC. I was also going to raise rent o be closer to market value and possibly try to get him on an annual lease.
- Do I have to sign a brand new lease with him?
- Could I send him a letter stating that all terms are the same except payee and rent amount (excluding annual lease)?
What do you all think is the easiest and safest way to approach this? Thanks in advanced.
I'm tagging along so I can follow what others' input is.
You must give proper notice, in accordance with your state laws, before you can raise the rent. Since his old lease is up, in most states it switches to a month to month lease. Some states the lease automatically renews.
If you would like to raise the rent, give the tenant the proper notice that you intend to do so. Present him with a new lease, and ask him to sign it.
If he doesn't, are you willing to let him go and find a new tenant?
@Mindy Jensen Thank you for the info! I'll definitely have to consider the risk of vacancy or getting a bad tenant.
Brand new lease, preferably drafted by a Business Attorney, with appropriate state law notices.