Rent Increase in NJ - Is Notice to Quit required?

Question

I tried searching for an answer and couldn't find anything on point.  This will be my first time increasing rent.  I found something from the NJDCA that says a rent increase must start with service of a Notice to Quit in order to end the current tenancy.  http://www.state.nj.us/dca/divisions/codes/publica...

But that is the only place I saw that requirement.  Others say that a letter spelling out the date, increase, options for the tenant to accept and get a new lease vs. vacating, etc. is sufficient.

1.  Is a Notice to Quit required?

2. Does it have to be personally served and signed for or is certified mail acceptable?

Jessica Zolotorofe · Answer

Did you read the NJ Law Bulletin? That might help, They even have a form. Here is the link. Rent Increase Bulletin

Daniel Green · Answer

I simply send an email to my tenants and tell them their lease expires on XXX date and that if they'd like to sign a new lease their rent will be $XXX an increase of $XXX over their current rent.  I also let them know they need to give me 60 days notice if they intend not to renew.  In reality, 30 days is all I need since I typically can't get tenants to lease 2 months ahead of time.  They always respond.  If they ever wind up not responding, I would send them a certified letter saying the same and then telling them if they don't respond I will assume they are vacating the premises and will be putting the apartment on the market etc.  I try not to be too formal but I do give them proper notice in writing.  When they say they want to renew, I send them a new lease with the new rent amount

Jessica Zolotorofe · Answer

Sorry I missed that! It's not always called a notice to quit, and you don't have to necessarily call it that, as long as it contains the requisite notice provisions. You can also ask if they want to enter into a new lease agreement as opposed to month to month.  Here is a really good article that also gives law citations if you feel better using those: Article

Joseph Y.X. Zhou · Answer

Good thread, I found it helpful - I'm in the same exact situation!

Ken Winter · Answer

Yes, I read that bulletin.  That's the link I included in my original post.  It's the reason I posed the question because that is the ONLY reference I have found in all of the NJ rental rules that mentions a Notice to Quit for renewal.  I guess I'll just play along and write a warm & fuzzy letter to my tenants to go along with it.

Jessica Zolotorofe · Answer

It only defaults to month to month if you don't (a) provide a notice to quit, or (b) enter into a new lease. Approach the tenant and ask if they'd like to enter into a new 1 year lease.

Ken Winter · Answer

@Jessica Zolotorofe-

No, the current lease runs until April 30.  So my 90 day requirement involves giving required notice by end of January.  How do I establish a new 1-year lease?  The default upon renewal is to convert to monthly.

Jessica Zolotorofe · Answer

You can just agree to renew for a full year, but did the original lease period already expire? Is it currently month to month?

Ken Winter · Answer

The Notice to Quit is a notice that the lease is being terminated.  I understand that this can be frightening to a tenant, which is why I posed the question looking for answers from more seasoned NJ landlords.  The terms of the lease allow rent increases with 90 days notice by landlord and 60 days notice for tenant to accept.  But the standard terms of the lease also stipulate that if neither party ends the lease at the end of the original or renewal term, then it automatically converts to a month-to-month.  So the only thing I can figure is that the Notice to Quit is required in order to establish a new 1-year term under a new lease rather than month-to-month.  There doesn't appear to be a way to "renew" a lease for a full year.   I hope that I'm wrong and someone can steer to an easier way.  @Jessica Zolotorofe - Is this correct?

Rent Increase in NJ - Is Notice to Quit required?

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