is it too late to raise rent?

Question

my tenant has a yearly lease which will expire April 30th 2018. I served a notice of nonrenewal, they asked if they could stay, I said we could discuss at a later time but they should plan to move.

I am almost certain they plan to hold over, their rent is currently below market rent so I'd like to charge more. It's my understanding that in PA a yearly lease that is not renewed would revert to MTM.

I know I probably should have included hold over langue in the original lease or on the Notice of Non-renewal but it's too late for that now so I need to determine

a. should I serve another eviction notice?

b. Can I raise potential May rent now or should I just cover that on an eviction letter.

Would an eviction have to be hung on their door or can I handle it via postal mail, texts and conversation?

Dale T. · Answer

Rule 1 Enforce your lease.  If you do not want to renew, send a notice of termination of lease or notice to quit.  You can likely find the form for your state by using your state name and real estate legal forms in the search criteria in Google.  Follow your state law which likely requires the notice to be posted in a conspicuous place at the property.  CHECK YOUR STATE LAW OR CONTACT AN ATTORNEY IF YOU ARE UNSURE ABOUT THE PROCESS.

You can sue for any "hold over" time period or deduct it from their security deposit like any other charge.

Thomas S. · Answer

Concentrate on getting them out, evict when necessary and do not concern yourself with a rent increase. You have already given notice to non renew, the deed is done.

Prepare yourself for the worst, if you have not studied your state landlord tennat regulations and educated yourself on evictions find yourself a lawyer in preparation to evict.

Nathan Gesner · Answer

You served a written notice of non-renewal. That trumps anything said verbally. Therefore, you have provided sufficient notice and the tenant should vacate at the end of the term.

The holdover clause may be helpful but it's not necessary. I would provide tenant with move-out instructions as a gentle reminder that you want them out upon termination. A simple way to do this without appearing obtrusive or mean is to give them a letter with some important instructions for vacating. This could include tips for cleaning, when/where to return the keys, when you will inspect, when they can expect the deposit back (based on the law, not your personal schedule), etc. This makes it clear you expect them to be out. I would send this letter this week.

Let a week pass and then follow up with a call and offer a "pre-inspection" of the unit to see if they have any questions and to determine the condition of the unit for renovation work. Again, you can disguise this as a "service" to the tenant. Let them know you will have to do the official inspection after they vacate but this is a great opportunity for you to identify problem areas they may be charged for.

Finally, the move-out date will pass and you have to determine if they are out or not. If they are not out, start the eviction process immediately. Do not wait, even if they offer to pay more money for holding over. It sounds like you're unfamiliar with the eviction process so I recommend you research it over the next couple of weeks and prepare.

Shannon Trivett · Answer

@Max Tanenbaum  I do want them out. They are my problem child so to speak... they fight often, slow pay and keep the yard a mess.... But they have been there 3 years and do pay. I'll draft another eviction notice for June 1and address the fact that they should leave and hold over will be charged at a much higher rent.  I'm trying to price them out so I don't actually have to fight to evict them.

Max T. · Answer

If the lease converts to MTM, you can then give the required notice of rent increase. But it sounds like you want them out, so you may have to evict.

Randy E. · Answer

While it may be too late to increase the rent for May, you should not have to wait a year.  In NC, a 30-day notice suffices prior to the end of a lease or on a m-t-m lease.  Just continue to rent at current rate for May, deliver a letter explaining the increase, and have the tenant sign a new lease now that takes effect on June 1.

However, please check PA law and make sure you don't have to wait longer.  Some states require a 60-day notice.

BTW, I now include in my leases language that stipulate that if the current lease expires without the tenant signing a new lease, that the rent increases $200/month and becomes a month-to-month lease.  If a tenant ever procrastinates on signing a new lease (with a smaller increase,) reminding them of that clause usually gets a very quick signature on my new lease.

Good luck.