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Updated almost 4 years ago on . Most recent reply

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26
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15
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Pamela W.
  • New to Real Estate
  • Burlington MA
15
Votes |
26
Posts

Tenants ignore lease renewal/increase letter

Pamela W.
  • New to Real Estate
  • Burlington MA
Posted

My tenants' lease ends Aug 31, and although they pay on time and take care of the house, they have been high maintenance, literally, from day one, and their usage of heat and water is much higher as well. The cost of oil, water, and trash pickup has increased, so I increased the rent 8%, the rate of inflation, and sent a renewal notice stating the increase via certified mail with signature receipt, and they got it July1, 60 days before the end of the lease, as it states that either party must give 60 days notice. I asked them to respond by July 7... and I have heard crickets.
They have been highly communicative when they want to complain about something.
I am assuming they are trying to buy a house, as they were priced out last year and ended up renting from me, or they are looking for a better deal, unlikely from what I see, as there are no homes and few decent apartments for rent in the immediate area. I would not be unhappy to see them leave, but would like to plan for upgrades that really need to be done when the house is vacant, and that takes some lead time to setup. My question is, what should I do in light of their non response. Wait a few more days, or until the end of July to start texting them, or just tell them I plan to start showing the house as they have not agreed to the increase. 

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8,355
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10,242
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
10,242
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8,355
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied

Hopefully you converted them to MTM at the end of the lease and not another year? 8% rent increase is beyond  generous 20-30% has been the rule here. If it is MTM, assuming they pay the new rent, give it 6 months and raise it another 8% with proper notice. If it’s a year’s renewal you’ll have to check with a local expert as to if you made a legally binding over even before they return it. If not, simply notify them you’re revoking that offer (again after the local expert says you’re giving enough notice.)

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