how do you handle Rent increases

Question

Good afternoon everyone,

Looking for feedback on how you all handle rent increases. Do you just send the tenant a letter notifying them of the increase without having to agree or sign anything or have them sign a letter and send back to you?

Nathan Gesner · Answer

I give them options:

1. Renew for an additional one-year term with an expiration date of [DATE] at a rate of [PRICE].

2. Continue on a month-to-month basis at the current rate + XX% (I use 25% for month-to-month terms but sometimes lower it depending on the market)

3. Vacate no later than the termination date of [DATE]

I ask for a response as soon as they receive the notice and require a response within seven days. If they ask for more time, I may give them a little more. They initial their choice and sign the bottom of the page. I sign it, and then we are locked into whatever decision they've made.

Greg M. · Answer

I generally contact the tenant around 40 days prior to the end of the current lease and let them know about any rate increase and find out their interest in renewing. If they're interested in renewing, I'll send over the new lease and they can return it to me any time before the current lease expires.

If they never send it over, the Holdover Tenancy clause in the original lease would kick in. Basically, the old lease becomes month-to-month at a significantly higher monthly rate than the original lease and the new lease.

Everyone either signs the new lease or lets me know they are leaving. That's one of the nice things about dealing with A/B class units. The renters generally aren't idiots and will be honest with you.

Julie Marquez · Answer

@Linda Thomas Find your state's rental housing association and ask them. The laws vary by state and are very specific and you'll want to do it the right way.

I'm in Washington State www.rhawa.org

Linda Thomas · Answer

@Greg M. - do you have them sign something agreeing to the increased rent or just wait till you have them sign the new lease?

Greg M. · Answer

I require tenants to sign a brand new lease every renewal. Of course, I'm in Los Angeles / CA where the rules change so fast that you have to make sure certain wording is in your lease or you get screwed.

For rent increases, I just contact the tenant and tell them that their current lease expires on this date and if they want to renew, the new rent will be X and to let me know before a certain date. If your rent increase is fair and you've been a responsive landlord, very few will push back on it.

Kim Meredith Hampton · Answer

i always give them at least a 45 day written notice by mail and email prior to the expiration of their lease agreement. This also depends on your current lease and states statutes, so please make sure you look those up and abide by the timelines and what type of delivery.

how do you handle Rent increases

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