Rent late and rent increase

7 Replies

Hey everyone! My tenant owes $200 rent for November & now is late for December, also I need to raise rent $25 a month from $675 to $700 month, rent has been $675 for 4 years now and I want to raise by $25 to cover increased cost of Taxes water sewage and garbage disposal. What’s the proper steps I should take to implement these changes? Any help would be greatly appreciated !

What does the lease say, @Shannon Jarrett ? If the tenant is late/not paying you should implement any late charges/eviction procedures. If your property is in Chicago, make sure you talk with your lawyer. I know the tenant laws there are stacked against the landlord.

At the end of the day, it's probably best to get this tenant out and a new one in at the higher rent. Screen well and make sure they have the means to pay.

Enforce your lease.  Not doing so is one of the biggest mistakes that investor landlords make.  You're running a business.  Why is the tenant using you as a payment plan?  If they need housing assistance, each municipality provides those resources - and they should seek a permanent resolution, other than stringing you along.  Rent is due in full when rent is due.  Send the tenant a Notice to Quit For Non-Payment of Rent. That is the first step in the eviction process and usually the one that gets a tenant to pay. 

And, the rent your state, rent can be increased with 30 days written notice at the end of the lease. You have to give 30 days notice as that gives the tenant the 30 days needed to end the lease. That's how Illinois Landlord-Tenant Law works on increases. Please take the time to make sure that a $25 increase is enough. After stagnant rent for 4 years and providing utilities from it, calculate your ROI and look at rent within the same market to make sure you're doing yourself right.

@Jaysen Medhurst when I purchased the property the tenants were already in place and I just made a copy of their lease and had them sign and kept everything the same. As I looked over the lease I noticed there is no mention of a late fee or rent being paid late. As I prepare for the tenant to sign the new January 2020 lease with the new rent rate what type of late fee should I write into the lease and on what day of the month should the late fee be implemented? 

@Shannon Jarrett , this all depends on local laws, so you need to speak with an attorney. I think BP has state-specific leases. Being Chicago, it's probably more complicated.

Have you missed your window to not renew this lease? Many states require 30 or 60 days notice of that. I think it's best if you part ways with this tenant, if possible. Otherwise, you could raise rent to whatever market is (assuming that's legal in your case) and hope he decides to move on when he sees the new number.