Hello everyone. Took over two rental properties from my father and I want to make some changes to better organize myself. In one property there are two units, both occupied. Both tenants have been there for quite some time already. The lease on each unit has expired years ago and has not been renewed. The rent has not been increased either. The supply for rental units in this town is pretty low so the demand is high. Average rent is about $1,300 for a two bed room apartment. Each apartment is about 700-800 square feet. Current rent is $1,050 and I would like to renew the lease with the current tenants but increase the rent to $1,200. I am thinking about giving them a 60 day notice to let them know of what the changes will be and then giving them the option to either move out or renew the lease. I know i will be able to attract a lot of people at that rate. The only issue i am having is I am not sure if I can increase the rent by that much. For all my folks in New Jersey, who understand the law more, have any input on this? Is there anyway I can get a guidebook for New Jersey for being a landlord? In other words, a book that will teach me how to do things the correct way. Please let me know. Thanks in advance.
It would appear from a very, very cursory look (not gonna do your job ;)) that Perth Amboy is Rent controlled with a 5% increase. It may be decontrolled on vacancy.
Kevin, Patrick is right. Please check the rent control in your town.
I will find out with the town then to see what the rules are on that. I will post back once i get an answer. Thanks for the guidance.
LIke other have said knowing your towns rent control is crucial. Make sure you are below that and have properly sent notice to tenants. Also make sure you dont charge more than one and half months security deposit per apartment. Also in NJ you cannot charge an extra "pet deposit".
I just finished reading a case where someone did that and had to pay thousands of dollars in penalties and fees when the tenant won the judgment against the owner. Hope this helps and best of luck on your investing endeavors!
I apologize for not updating. I did exactly as the others stated and found out what the rento control of the city is. I simply just googled rent control Perth Amboy nj and it brought to the city’s clerk website. There I was able to find the information under chapter 353 RENT CONTROL. The amount is not to exceed 5%.
I appreciate everyone’s feedback and guidance. I will be sending a letter to the tenants letting them know the rent will increase and that the lease will have to be renewed. If anyone has any questions, please feel free to ask me. I am very familiar with the market in Perth Amboy NJ and I always willing to help. Thanks!
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