Rental Increase Question

[Ted Klein]

I have two fantastic long term tenants that I'd like to keep. Both always pay on time and take great care of the place. I thought that the proper notification of a rent increase was only 60 days notice, however, I researched the Washington State Law and I see that the law is actually 90 days notice required. My problem is that the current lease expires on July 31st which is currently only 77 days before expiration of their current lease.

I intend to send the notification of increase with a 90 day notification but I need advice on my three options:

1. Explain to my tenants my mistake of the 90 day notice and ask them if they would still renew with only 60 days notice and then give them the first month of the lease term at the current rental rate? This would be written into the lease agreement like a discounted rate for the first month.
2. Let their current lease expire with a  Month to Month agreement for 30 days and then have the new lease set to start on September 1st.
3. Should I write a lease agreement for 30 days and then another one for a year starting in September?

I want to ensure I stay within the law, but I also like my leases starting in the summer. It seems the most logical is to go with option 1 or 2. I like option one the best, option two has more risk, but as I said, both are outstanding tenants and I wouldn't expect any issues in 30 days, but... you never know.

Thanks in Advance

[John Barrett]

@Ted Klein Given that you have stated that these are fantastic long term tenants, I would not be overly stressed about this. Assuming you are not raising the rent by an amount that would cause these good tenants to move, I would simply provide written notification that their lease will be ending at the end of July and will revert a month to month lease.  Let them know you plan to raise their rent starting in September (provide this in writing). 

If you are concerned about a when your lease period is ending simply sign them to a 6 month lease and then let it revert to month to month and sign a longer term lease middle of next year.

Long term tenants who take care of your property are a great asset.  While you need to keep their rent close to the market value, retaining a good tenant at a slightly below market rent is beneficial to both parties.

Best of luck,

John