Rent Increase with Pre Existing Lease

3 Replies

Hi, I’m interested in purchasing a property that has a pre-existing lease through 2020. My question is can I raise the rent between now and 2020 if the market value for the rent is under by about $100 since I would be the new lessor??

It depends on the language of the lease. It will include a clause regarding rent increases during the lease term.

Short sighted of landlords to tie tenants into long leases. The tenants often end up having to break their lease.

Most likely no because they signed a lease that binds them to existing terms, and unless those terms have a rent increase it is unlikely you would be able to raise the rent for the term of the lease, but contact a local property manager to be sure, they will know the law in your locality.

As Thomas said, it depends on their existing lease agreement that you would inherit. However there are workarounds where you can have the tenant move out, check your local laws. 

Also depends where you live as well. In BC, there are limitation with percentages that a landlord can raise rent each year and once the lease is up it will roll month to month unless the tenant wants to resign another term. 

I know in other places once the lease is up, the landlord can choose whatever amount they like to increase it to.

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