I have my parent's old home rented. Current tenant had a three year lease with no rent increase, which expires October this year. The lease states that tenant shall vacate premises on termination of the agreement unless;1) landlord and tenant have extended this agreement in writing or signed a new agreement; 2) mandated by local rent control law; or 3) landlord accepts rent from tenant, in which case a month to month tenancy shall be created which either party may terminate as specified in paragraph 2a
2a states either party may terminate in writing with 30 says notice (paraphrased)
Last May the tenant and I signed an agreement, rent increased 12.5% and the main verbiage is:
Specifically, the Parties agree to extend the Lease as per Provision 2A/B “Month to month & Lease” The extension to run month to month beginning October 1, 2018 at a monthly rent of $XXXX and requires a 60 day notice on the part of either tenant or landlord in order to terminate the agreement. Such notice may be given on any date.
I believe I read the part above that we did 1) by extending the agreement. I believe they are required to give 60 days notice. Anyone see any reason why not? I believe they think they are not having to pay October rent based on her telling me they move Oct 1.
Is it my obligation to point this fact out before Oct 1? I already have their October check, but would not cash it without talking to them, however, I also have their damage deposit with is more than October rent. My initial reaction is to not point this out to them until I know what I am doing. If I decide to rerent immediately, then I would try to rerent in time to refund them some share of the month's rent.
I need to think through how to handle the house moving forward. Mom is in her 90s and needing way more care, we've added $1000/mo in care assistance just this year and that is not covering a lot of care hours. Having her money in the rental home is good income, but this market in the foothills of the Gold Country is weird. They bought for the low $200ks 25 years ago; in 2006 the house next door sold for over $500k. The crash there began in late 2006 and the house did not sell over a year on the market, so we began renting.Four years after that crash a tenant was interested in buying and the value was only mid-200k, so I decide to wait and try to make the money back on the value of the home as the market increased. Looks like $340-360k now depending how we snazz it up. But the is an area where spring/summer is best for sales.
I can fix up the kitchen and list it this fall or I can skip the improvements and rerent it for 6-18 months. But I pay a rental fee of one months rent.
And this is an area where many people come from the Bay area, I read that the Bay area RE market is slowing down. I don't want to miss the peak and see the market tank again!
Any ideas or thoughts for me to consider to make my most informed decision?