Hi all, I have a tenant who I have been providing about $200 credit every month for her to stay and now her lease is due. I give her market rent if $1600 to renewal. She told me she is happy to pay that with month to month lease.
Can I tell her if she does month to month rent will be $1700?
Personally I don’t really like her that much, I have to reminder her for rent on due date every month she is always one or two days late on rent. And she is only tenant who asked me for credit due to covid and I provide and now with lease renewal she want just month to month . Seems like she want everything on her way.
What’s best way to response to her if I want to tell her is $1700 per month for month to month or can I just tell her I am not giving her month to month but 60 days to move out ? What’s the best approach to not make things worse. With not eviction law I want to be careful with her.
Thanks
The landlord always signs the lease after the tenant does. Always. Because until you sign it, it's not accepted and it's not a binding contract. So as long as you haven't signed any lease with her, you are under no obligation to renew.
As for a polite text/email message, maybe something like this would be more comfortable for you:
"Thank you for letting me know that you will not be signing a 12-month lease. As this rental is only available with an annual lease, please let this serve as my 30-day notice of non-renewal. Please let me know when you will be available for the final walk-through of the property on or before (date) so your security deposit reimbursement can be processed." - Done. No apology. No maybe's. You're simply acknowledging and honoring her decision.
And, just a couple of things I want you to remember:
1. You are not only being polite - but respectful - by telling her no. By giving her a direct and concise response, she has time to find a new place and ensure she returns yours in good order. Hedging or accepting something you don't want to do is not in her best interest or yours. You'll resent her being a pain and, if you think she pays late now, just wait until the rent is increased.
2. We teach people how to treat us. She hasn't treated you well. Not paying on time is a power play. Telling you that she will only go month-to-month is too. Some people see those who are "nice," as weak. Choose not be be "nice." Kindness is more intellectually honest and is a solid business standard. Being kind means telling the truth, being respectful, more.
3. And, consider this: you've made a business decision on the rent and lease term. It's not personal, it's business. It's not emotional. Do not allow anyone to make it something it isn't. You've made the bigger investment here and you need to protect it.
4. Do it right now. The second you do it, the pain will end. If she gets angry, that's her choice. Don't engage in it. It's not an emotional issue and she doesn't get to bully/control you.
So let's practice: Lesson #1 - BE KIND TO YOURSELF. Lesson #2 - RUN YOUR BUSINESS. Lesson #3 - TREAT YOURSELF WITH RESPECT AND EXPECT OTHERS TO TREAT YOU WITH RESPECT. And, more of us have "been here, suffer through this, and emerged stronger for it" that there's not doubt that:
You've got this...
Oh, so please, save yourself. And, don't let her run your business by deciding what lease term is acceptable. A month-to-month lease with a late paying tenant who has to be subsidized is my version of hell. Let her go. Simply tell her that you are providing her with 30-days notice of non-renewal as you will renting on an annual basis, with no subsidy, and the new rent will be $1600. Let her know that she will need to schedule a final walk-through of the property with you prior to her departure date of (whatever it is and not a day later) - and that you will start marketing the property for rent immediately. Give her to her via email or letter - so you have proof of notice given.
You're about to not only make more money but you're going to be saving yourself time and aggravation the second she becomes someone else's problem.
Please accept my congrats in advance!
@Patricia Steiner, thank you so much for your response. Can you Please help me with what’s best way to put on phone text to her know that without make her upset.
I am probably too soft heart for landloard.
@Patricia Steiner, thank you again I truly apreciated your response.
Also I realize I have already provide her lease renewal at first place, can I say I decide not to renewal the lease now? Or should I just say since she can’t sign the anual lease renewal I will have to let her go then.
Thanks
It doesn't matter if you like her or not. If market rent is $1600, then charge her that for a 1 year lease. Your posts contradict each other. Did she sign the 1 year lease renewal or she didn't.
The fact that you offered it to her and she countered with month to month means that she hasn't accepted the lease renewal. Tell her it is $1600 a month for the full year, no month to month option. Of course there is nothing stopping her from signing it and then bailing 4 months down the road.
The landlord always signs the lease after the tenant does. Always. Because until you sign it, it's not accepted and it's not a binding contract. So as long as you haven't signed any lease with her, you are under no obligation to renew.
As for a polite text/email message, maybe something like this would be more comfortable for you:
"Thank you for letting me know that you will not be signing a 12-month lease. As this rental is only available with an annual lease, please let this serve as my 30-day notice of non-renewal. Please let me know when you will be available for the final walk-through of the property on or before (date) so your security deposit reimbursement can be processed." - Done. No apology. No maybe's. You're simply acknowledging and honoring her decision.
And, just a couple of things I want you to remember:
1. You are not only being polite - but respectful - by telling her no. By giving her a direct and concise response, she has time to find a new place and ensure she returns yours in good order. Hedging or accepting something you don't want to do is not in her best interest or yours. You'll resent her being a pain and, if you think she pays late now, just wait until the rent is increased.
2. We teach people how to treat us. She hasn't treated you well. Not paying on time is a power play. Telling you that she will only go month-to-month is too. Some people see those who are "nice," as weak. Choose not be be "nice." Kindness is more intellectually honest and is a solid business standard. Being kind means telling the truth, being respectful, more.
3. And, consider this: you've made a business decision on the rent and lease term. It's not personal, it's business. It's not emotional. Do not allow anyone to make it something it isn't. You've made the bigger investment here and you need to protect it.
4. Do it right now. The second you do it, the pain will end. If she gets angry, that's her choice. Don't engage in it. It's not an emotional issue and she doesn't get to bully/control you.
So let's practice: Lesson #1 - BE KIND TO YOURSELF. Lesson #2 - RUN YOUR BUSINESS. Lesson #3 - TREAT YOURSELF WITH RESPECT AND EXPECT OTHERS TO TREAT YOU WITH RESPECT. And, more of us have "been here, suffer through this, and emerged stronger for it" that there's not doubt that:
You've got this...
I renew most of my leases month-to-month. A 1 year renewal is nice, but month-to-month allows me to easily end the lease instead of evicting which might be blocked by COVID rules at any given time. Think about how important a 1 year lease is to you and go with it if you are willing to incur vacancy expense.
I love it with my tenants pay rent a few days late. Ka ching! Late fees are a wonderful thing. Use them. Rent is $1,250/month. Oh, you need a few more days. No problem. Late fee is $50, 4% more than I was expecting for a little bit of hassle. Calculate your returns on that for an investment of only a few days. Late every month makes $600 more in a year in this example.
I don't know what the maximum you can increase the rent in New York is. In California we can raise the rents by 5% plus some index I think it is the increase of inflation, or something. Then, some cities have a maximum increase that is much less. So, check for your area.
As far as how much can increase your rent check with the guidelines for both your state and the city the rental unit is in and increase it to the max if you like.
As for the tenant paying their rent late, there are many landlords who love to have their tenants pay their rent late because they make bank from the late charges. When you add the late charges at the end of the year, sometimes the numbers look great.
As for whether you like your tenant or not, you are running a business and you don't want to shoot yourself in the foot where you evict your tenant because you don't like her, you lose thousands of dollars it costs to clean a unit and then you lose rent while you are seeking a new tenant and lose the rent during the period you wait for the new tenant to move in.
Ironically, your next tenant may put on a great game face when applying for the unit and turn out to be the tenant from hell.
Forgot!
August 7, 2021
Dear Ms. Jones:
Your lease will expire on XXX XXX and due to increased costs for taxes, insurance and other increased costs your rent will be increased to $1700 effective October 1, 2021.
Thank you very much.
With All My Love (just joking)
Mr. John Johnson Junior
Property Owner
One thing I want to add to all the great advice here is it should be email for sure 100%. Not text. Email is easy to find again, and email is more permanent documentation.
Is the $200/ month credit being provided by the government through a non-profit organization because she filed a COVID hardship declaration form? Or did you voluntarily reduce the rent by $200 to keep the peace with her?
If you are getting the $200/month credit from a non profit due to the tenant's declaration she has a COVID related hardship, then it might be a big hassle to evict her if you give her 30 or 60 days notice to vacate. She might decide to stay put and wait to be evicted and fight the eviction.
I read the CDC just issued some sort of extension to the eviction moratorium in the past 7 days, but I don't know the details on that. Best of luck to you!!
Late fees are great but it can be nerve racking as it is a dicey subject in the balance of tenancy.
I think the first thing is to ask whether or not you have enough income elsewhere to cover possible long term vacancies. Also, what is your risk tolerance? Where do you want to see this business grow in the months and years to come? Why have you been so lenient?
Depending on the answers, it may dictate the strategy. I for one have come to be very firm but fair. I understand that life issues may arise and we all need help sometimes. But these days, I follow the lease terms and issue a late notice and late fee after 5 days have past. Sometimes I also issue an eviction right away as well (curable) just to get the ball rolling.
It all depends on your personal business plan but in the rental game, it should strictly be business. Take temporary losses only if it will likely provide greater gains later.
Just my .02
The landlord always signs the lease after the tenant does. Always. Because until you sign it, it's not accepted and it's not a binding contract. So as long as you haven't signed any lease with her, you are under no obligation to renew.
As for a polite text/email message, maybe something like this would be more comfortable for you:
"Thank you for letting me know that you will not be signing a 12-month lease. As this rental is only available with an annual lease, please let this serve as my 30-day notice of non-renewal. Please let me know when you will be available for the final walk-through of the property on or before (date) so your security deposit reimbursement can be processed." - Done. No apology. No maybe's. You're simply acknowledging and honoring her decision.
And, just a couple of things I want you to remember:
1. You are not only being polite - but respectful - by telling her no. By giving her a direct and concise response, she has time to find a new place and ensure she returns yours in good order. Hedging or accepting something you don't want to do is not in her best interest or yours. You'll resent her being a pain and, if you think she pays late now, just wait until the rent is increased.
2. We teach people how to treat us. She hasn't treated you well. Not paying on time is a power play. Telling you that she will only go month-to-month is too. Some people see those who are "nice," as weak. Choose not be be "nice." Kindness is more intellectually honest and is a solid business standard. Being kind means telling the truth, being respectful, more.
3. And, consider this: you've made a business decision on the rent and lease term. It's not personal, it's business. It's not emotional. Do not allow anyone to make it something it isn't. You've made the bigger investment here and you need to protect it.
4. Do it right now. The second you do it, the pain will end. If she gets angry, that's her choice. Don't engage in it. It's not an emotional issue and she doesn't get to bully/control you.
So let's practice: Lesson #1 - BE KIND TO YOURSELF. Lesson #2 - RUN YOUR BUSINESS. Lesson #3 - TREAT YOURSELF WITH RESPECT AND EXPECT OTHERS TO TREAT YOU WITH RESPECT. And, more of us have "been here, suffer through this, and emerged stronger for it" that there's not doubt that:
You've got this...
Patricia, this is fantastic advice. Especially the part about signing the lease last. Learned that the hard way.
Also, you are an excellent writer! Perhaps you moonlight as a copywriter?
How kind of you...thank you for the mention. I wish the advice could have been acquired from something other than "win some, lose some" but hopefully we can help others have more "win some" than the later.
Best...
@Patricia Steiner
Wow! Your fabulous reply should be made into some kind of Biggerpockets site template.
Thank you so much.
@Patricia Steiner, thank you so much patricia, here is the updated. I told him since her we won’t do month to month, and since she output for one year lease option we will have agent contact her for showing and final walk. She reply to me she will do 6 month. And I told her we only offer one year option. She say she will get back to me in on day or two. I told her ok.
Now is third day she haven’t reply to me yet. What Anoyed me about this tenant is the slow on response and usually one or Two days on Late payment with me sending reminder.
Should I follow up with her ask her for her response?now is day 3. With current situation if she decide to no to pay the rent and stay at my place I can’t even evict her. No sure if I should be straight fwd with her and try to kick her out or should I work around with her.
Thanks
Just an update on the case, I follow up this morning about if she decide to renew one year lease or not. And she mention happy to sign and thank you for your patients. Altho she pays rent late but everytime I send reminder next day . Let’s say on 5th she haven’t pay yet and I send a reminder the next day and she pays on the 6th. I asked her few times to send a self reminder of rent and 10 put of 12 she still pays only when I remind her.
Thanks
Liz, first and foremost, I'm proud of you. You did the right thing. You've been gracious, kind, and patient. She has not appreciated it so it's past-time for her to leave. It's called karma.
Tell her - today/right now, and document it - that you will not be renewing the lease and that you're moving forward with other interested applicants. Advise that you will need to schedule the final walk-through on or before the last day of her lease and the unit should be completely vacant and clean.
Know that the moratorium only applies to non-payment of rent under a current lease. It does not apply to expired leases or lease violations. She can leave like an adult - or you can have her quickly evicted and she can have that Scarlet E on her credit bureau forever. Her choice.
If she attempts to argue/take control, simply stop her at mid-sentence and state clearly that her lease expires on (date), you will not be renewing it, and that you have decided to move forward. You can also share that the moratorium does not apply to expired leases if you need to push her off her perch to shut her up. Those who bully are always the ones who can dish it out but they sure can't take it. Hold your ground and watch her fold. She's not in control. You are. Don't empower her by giving her another minute. (Remember this: you can always make more money but you can't make more time. We have to be careful who we give our time to - and she's not time worthy).
Trust me, you've got this...it's almost done!
(Feel free to PM me if you want to discuss more...).