How and When Can You Collect Month-to-Month vs Lease Rent Amount?

4 Replies

Hi all, this is my first post. My question, what is the procedure to collect a new increased rent amount from tenants? And what would you do in this situation? I have a rental property whose lease expired in August. That lease stipulated a higher month-to-month rate if no new lease were signed. On the advice of my property manager I increased the month-to-month rate and the leased rental rate for the new lease. It's been THREE months since the old lease expired. The tenants have neither signed the new lease nor increased their rental checks. The property manager has been operating under the assumption the tenants WILL sign the new lease. I have been asking my property manager repeatedly why he is not collecting an increased/correct higher rent amount. Finally he told me this week he would "send them a notice" that they were now on month-to-month terms and need to pay the higher amount. I am very confused. I thought rentals automatically turned into month-to-month after the lease expires. Also, aren't I owed back rent at this point? Details: Rental is in DC

YOUR PM is dragging his feet.. Late notice, pay or quit, 

If you gave them proper notice prior to lease end that rent would be increasing.

You need to download your state landlord tenant laws as it seem the PM doesn't understand them or is choosing not to enforce. 

You need to learn the regulations and get on top of your business operations. Relying on a PM and allowing a situation to go uncorrected for 3 months is a very poor business practice on your part.

Having a PM instead of self managing does not remove your responsibilities you simply manage a PM instead of a tenant.

You need to develop better business practices. Real estate is not a passive investment. Take charge.

Hi all, thanks for the honest and direct feedback. I've spoken to the property management company and plan to visit early next year to clean house.

In case any are curious, I'm an unintentional investor renting out my former home. I'm also an absentee landlord who's had terrible luck with PMs, I fired my last one for being shady. This PM is mostly just incompetent. I've looked for a new PM but my property is an executive furnished rental so not all PMs will touch it and the ones that do have gotten poor marks from other landlords I've spoken to. My overall impression is that the PM landscape is grim in general and specifically in my rental market.

Financially, it's stable so my attitude till now has been "better the devil you know".  Recently I've gotten a financial advisor and am looking to be an active investor. Which is why I'm now on this site.

Look forward to sharing and learning more from folks like y'all!

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.