Investor · San Francisco, CA · Member since 2016 · 4 posts · 0 votes
I have 2 part question. First question is about old rental agreements. I have several tenants that have been renters for over 10 years. They're all on month-to-month and their rental agreement is somewhat outdated. How do I update it or can I just have them sign a brand new one? Second question is about last months deposit increases. If I increase rent every year, do I need to also increase the last month deposit or can I collect the difference during the last month before they move?
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
Send out a resident contact sheet with your new month to month lease, so all their personal information is current, phone, email, car license plates.. emergency contact for them.
I'd keep the deposit the same,, and any rent increases would be subject to proper notice with the renewal, new lease.. state landlord laws apply for notices of increase, Anytime you do a rent increase I would do write up new lease per those terms.
Buy and Hold Investor · Knoxville, TN · Member since 2013 · 450 posts · 270 votes
9y
@Jing Tagle You need to check the rules in California, but in TN, if they are on month to month, you can get them to sign a new lease with just a 30-day notice. I don't do last month deposits, I just do security deposits. I could ask for more deposit if the rent goes us, but I don't.
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
Send out a resident contact sheet with your new month to month lease, so all their personal information is current, phone, email, car license plates.. emergency contact for them.
I'd keep the deposit the same,, and any rent increases would be subject to proper notice with the renewal, new lease.. state landlord laws apply for notices of increase, Anytime you do a rent increase I would do write up new lease per those terms.
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
9y
Agree with others that I would not try to collect any additional deposit. When they give notice you can notify them of the shortfall due for that final month as part of their move out letter.
You can cover agreement wording changes with amendments or new agreements. When you set up a maintenance inspection, explain that you will be bringing a new agreement to get new signatures. Explain the changes, give tenants time to review it, and make the effective date far enough in the future to qualify as notice.
I have 2 part question. First question is about old rental agreements. I have several tenants that have been renters for over 10 years. They're all on month-to-month and their rental agreement is somewhat outdated. How do I update it or can I just have them sign a brand new one? Second question is about last months deposit increases. If I increase rent every year, do I need to also increase the last month deposit or can I collect the difference during the last month before they move?
Hi Jing, I managed a 25 unit building in Santa Clara. This is a great book with lots of forms included. It was my bible and I used their forms instead of the apartment association contracts:
Since they are on month to month, you really don't need to get them to sign a new contract. You can just change the terms with the proper notice. For changes that don't involve money, you can just give them 30 days notice.
So, you can just give them all written notice of new policies effective in 30 days. It can basically be a contract, but without required signatures at the end. Doing it this way avoids the tenant delaying or refusing to sign a new contract. I'd just send them with delivery confirmation with just USPS priority mail. If you email with them, you can also email them a copy. What I like about USPS priority mail, is the postman just scans it and puts it in their box. They can't refuse it. And you have proof it was delivered.
In CA, there is no such thing as last month's rent deposit. All money collected in the form of fees or deposits, all fall under one umbrella rule for security deposit money. Doesn't matter what you call it. What you could do, is also put that info in your notice to the tenants. Say that under CA law, all deposit money they gave you must be used as their security deposit, so they do not actually have a last month's rent available to them. You could include the total that you have for their security deposit in your account.
If the property is in SF proper, you might want to see if there are any rules specific to SF regarding whether or not you can raise the security deposit. In CA in general, you would have to give them 60 days notice for any increase in rent, because they've been there over 1 year. Also 60 days if it's more than 10% increase.
If I remember correctly, though, you should also be able to require more security deposit money, if you give the proper notice. If their deposits are ridiculously low, you might consider asking for more. I never did nor did the owner I worked for. If the tenant is great and you want to keep them, it could create bad feelings. They will expect rent increases, although they will grumble, but asking for more deposit money could make them turn into nasty tenants.