Exteding lease to my tenant but she requested few conditions

Exteding lease to my tenant but she requested few conditions

Member since 2021 · 199 posts · 42 votes

Hi all,

I am extending one year lease to my tenant with not increase at all. I thought she will appreciated.

Instead she mention , I will resign only if you do following few things

Door belt to be fixed. Which could be easy to fix or depends the building if is connect to the whole building system it could be very complicate.

And others small issues she mention.

I did not like how she doesn’t appreciated my no rent increase lease instead she requested few thing to repair as to resign the lease.

I would gladly to fix those things just don’t think is right way for her to mention as a condition to resign the lease.

Can I tell her I decide now to extend one year lease with $50 increase and I can’t guarantee to meet her request of conditions? Which is the best way to approach. I personally dislike how she ask to resign the lease under conditions.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y

Most tenants won't appreciate no increase.  If there are repairs to be done, they should be done independent of the lease renewal.  Look at the list and see what are things that need to be fixed and what is her 'wish list'.  Tell her that you will repair the items, however, there will be a X% increase in the rent to keep up with increased costs.  Just do a remote door bell-the part by the door is battery operated and inside, there is a unit that plugs into an electrical outlet.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    Most tenants won't appreciate no increase.  If there are repairs to be done, they should be done independent of the lease renewal.  Look at the list and see what are things that need to be fixed and what is her 'wish list'.  Tell her that you will repair the items, however, there will be a X% increase in the rent to keep up with increased costs.  Just do a remote door bell-the part by the door is battery operated and inside, there is a unit that plugs into an electrical outlet.

  • Member since 2021 · 199 posts · 42 votes
    3y

    @Theresa Harris, thank you Theresa, can I just tell her I made mistake with my rent template and tell her there is going to be $50 increase. ( since We haven’t sign the lease yet)

    And tell her the new rent is only Offerred as it is condition that’s is not offered on condition of tenants repair request.

    And for repair request have he send an email to my repair team which they will fix it.

    I am just try to separate the two matter . I think by mixed them together is too complicate and I do not like how tenant negotiated this way. As I am not desperate to renew the lease with her.

    For location I have no issues to find better tenant and same or higher rent. I kind of wish to kick her out but in Her state I have to renew the lease with her. I can’t no renew the lease.

  • Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y

    I am an also an investor/landlord in Fort Lauderdale. Frankly, you should increase the rent every year imo. Why? Because your costs are going up every year (insurance, water, cost of labor, etc). That being said, if the things she is asking for are reasonable, then I would go ahead and fix them. An issue with a door seems reasonable enough. Most states require enough notice before renewing the lease and making a rent increase so make sure you have given enough notice based on your current lease. In my state, the usual is 60 days with one year lease and 30 days if month to month.

  • Member since 2021 · 199 posts · 42 votes
    3y

    @Ray Hage, thank you ray, if I already told her no rent increase can I just tell her know there is going to be rent increase previously I make mistake on my email template?

    Yes I usually do a small rent increase every year after they stay there for 2 years.

    This particular tenant make many requested one of them is fix all the spring and locks on the windows. Which I thought we already fixed at first place. And others few repair requested. Which seems reasonable but I just don’t like her tone of

    She will renew the lease only if I have done following repairs. ( which I probably will do anyway but she is kind of using a tone that’s force me to do it. ) sense trouble here.

    I don’t know if I am making sense here.

    What do you think is the best approach to correct the matter now let her know there is going to be rent increase

  • Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y
    Quote from @Tina Lee:

    @Ray Hage, thank you ray, if I already told her no rent increase can I just tell her know there is going to be rent increase previously I make mistake on my email template?

    Yes I usually do a small rent increase every year after they stay there for 2 years.

    This particular tenant make many requested one of them is fix all the spring and locks on the windows. Which I thought we already fixed at first place. And others few repair requested. Which seems reasonable but I just don’t like her tone of

    She will renew the lease only if I have done following repairs. ( which I probably will do anyway but she is kind of using a tone that’s force me to do it. ) sense trouble here.

    I don’t know if I am making sense here.

    What do you think is the best approach to correct the matter now let her know there is going to be rent increase


     Hi Tina, I understand. Assuming you have given her enough notice, you can always make a rent increase anyway. If you want to be nice about it, just tell her you made a mistake with your costs and really need the extra 50 per month. You can say property taxes are going up or the cost of insurance, etc. However, consider this. Do you really want her to be your tenant? 

    If you think you can get a better tenant with a significantly higher rent (let's say 100-200 extra per month), it may be worth not renewing the lease. Most of the time, if you have a one year lease, it goes month to month if you don't sign another one before the original one ends. Of course, this will depend on do you have time to prep the apartment for a new tenant etc.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Tina Lee:

    Welcome to reality!

    You made a generous offer and your tenant doesn't care. This is normal. In fact, I see Landlords keep rents low and even give free rent for a month at Christmas time only to be burned by their tenants. They do not care about you! Being nice to them does not mean they will be nice back. The best way to run your rentals is like a professional. You offer your rental for the fair market price, you maintain it well, and you treat the Tenant honestly and fairly. No special concessions, no banana bread, no Christmas cards.

    Tell them you've changed your mind. Offer them a renewal with an increase to market rate and promise to hire an electrician to fix the door bell (why did you wait?). Your responsibility is to fix everything that is broken through ordinary wear-and-tear so the tenant is getting what they paid for when they first moved in. Fix what is broken. If it was broken through neglect or abuse, charge the Tenant. If it's an unnecessary request (e.g. she wants you to install shelves for her knick-knacks) then you choose to do it, let the tenant do it at her cost, or reject the request completely.

    The DIY Landlord Book4.7248 Reviews
  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y

    Aloha,

    You do not state where you are located, but in some jurisdictions you could possibly create a new problem by apparently "retaliating" against the Tenant with a rent increase after her complaints.

    You should have a clear renewal process, which should include an annual walk through inspection of the unit to see how it is being cared for, and to look for unreported issues such as ongoing minor leaks, or appliances not operating properly (refer/freezer door gaskets damaged due to age; stove burners or oven elements burned out, etc). You should also ASK the tenant if there are any other issues, since it is impossible to see all in a furnished/cluttered home. I also ask if they WANT to remain another year, or if they have other plans at some point over the next 12 months. This allows me to strategize for a potential move out in advance; and I take the opportunity to inform them of the law regarding breaking an Agreement early so they are not surprised.

    We only offer long term renewal after having inspected; reviewed the current market; and discussed with Owner their intentions and preferences for terms. We do, however, also allow Tenants that are proven to automatically convert to a month-to-month term after their initial year and inspection.

    We then send out a one page addendum for the Tenant to review, sign, and return by a specified deadline. They will have three options: Rent is increasing to X effective X date; Tenant is giving required 28 days notice of vacating; or Tenant proposes modification/adjustment of terms offered, in writing, which must be approved by PM. I have only very rarely had a Tenant propose such a modification, and then it was just a compromise on the increase amount.

    Lastly, it is your responsibility to maintain a unit as it was rented. In other words, if the doorbell was working at move in, you need to fix it now. If it was NOT working at move in, you should refer the tenant to a notice that should have been provided them with their application that the unit was rented AS IS, and that is how they accepted it. It also should have been noted in the move in condition form as inoperable, and either repaired at that time or noted that it would not be. If that is the case, you should have removed the non-functional doorbell button to prevent them raising the issue later. At move in, everything SHOULD be functioning properly.

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    The repairs should be made now. Before you even talk about the lease renewal. Most repairs should be made within a couple days. Especially if the “big one” is a stick on battery operated door bell for less than $30. 

    You forgot to put your location in your profile for bette help. But you might want to look in to using a property manager. I doubt any property manager would have gone without raising rents and that raise alone might pay for their fee. I would expect at least a 5-10% increase in most markets. If your market doesn’t have increasing rents be careful, it might be a warning sign. Plus you wouldn’t have to ruin your day over not getting a thank you. Good luck. 

  • Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    3y

    Go M2M and you can make contract changes within 30 days vs a year. Tenants will move when they need to move. Long term leases mainly lock the owner in. 

  • Member since 2021 · 199 posts · 42 votes
    3y

    @Ray Hage, hi ray, as you are investor from NJ, I also learn recently in NJ you have to provide lease renewal unless tenant did something wrong. Such as habitual late payment etc. So I have no choice but give her max rent increase allowed

  • Member since 2021 · 199 posts · 42 votes
    3y

    What do you think of tenant want to make negotiation of if you fix this I will stay if you don’t I will go.

    I want her to leave. Since I don’t like that kind of person to be my tenant.

    But I can’t just say I won’t renew your lease.Because

    Of state law I have extend lease renewal to her

  • Rental Property Investor · Chattanooga, TN · Member since 2017 · 203 posts · 188 votes
    3y

    I learned the hard way about not raising rents each year.  I use to hold flat for 3 years, not anymore!  My lease has a clause that explains the yearly rent increases (eat least 3%, rounded to the nearest $5 mark - it even has an example of the math in it).

    And I would never tie fixing issues that should have been reported to a lease signing.  I'd let them know that they need to submit a maintenance ticket and it'll get reviewed and usually fixed.  My lease states I have 48 hours to make a reasonable effort to coordinate repairs, that doesn't mean it'll get fixed that soon.

    Lastly, since you already offered I'd stick with the new lease terms but that would change next year and it might be upped by 10% to make up for this year.

  • Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    I think you may be a bit too sensitive about the request, especially since they seem fairly cheap and things you said yourself you don't mind doing.  You say though that you can't non renew but you want the tenant to leave so call them on their bluff and say you are not fixing those items and ask them to send you a termination notice.  I almost guarantee they won't call your bluff and it will be a non issue but either way you are getting what you want.  Either they leave like you want or you don't have to do the repairs.  I wouldn't however go back and up the rent after you said you won't as it does feel like retaliation which could get you in trouble.  

  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y
    Quote from @Tina Lee:

    What do you think of tenant want to make negotiation of if you fix this I will stay if you don’t I will go.

    I want her to leave. Since I don’t like that kind of person to be my tenant.

    But I can’t just say I won’t renew your lease.Because

    Of state law I have extend lease renewal to her

    If you do not want the tenant, do not make the requested repairs until she vacates.  Provide her a notice of tenant termination.  Note you did not terminate the lease.  The tenant refused to extend with the lease that was offered.

    I am concerned about your apparent lack of knowledge of the LL rules in your jurisdiction.  I suggest you consider hiring a PM.  in the absence of hiring a PM, I still encourage a rent increase for “normal” years (during 1st year of Covid only my tenants far below market rent received rent increases). 

    either properly manage your property or pay someone to manage it properly.  I have acquired multiple properties from LLs that poorly managed their property.  If they had properly managed their property their profit would have been higher and their property would have been worth more.  Paying a property manager sometimes is the wise financial decision. 

    by the way a doorbell is an easy fix.  It is either the button, wiring, or bell.  Button and bell are easy fix.  If it is wiring, buy the remote door bell for easy installation. 

    good luck


  • Member since 2021 · 199 posts · 42 votes
    3y

    Thank you all, I have let her know we will do a increase because I made mistake previously

    For those who Recomend me find PM. Thank you. But in my previous experience once apartment turn into pm I have no cash flow and a lot repairs. Also more money spend on repair vacancy. Sometime even give me negative cash flow. I do prefer self management. And yes I have tried few different PM company. Feel free to share your story if you are the owner of the property.

    I don’t have luck on finding a good PM company

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