Mechanics of Raising the Rent

[Jeremy Z.]

Hi,

My rental property is in New Jersey if that matters.

I have had a tenant in a rented condo for several years and haven't raised the rent throughout. Obviously I am now way below market and would like to start correcting that (I am thinking of a ~10% increase, which would still leave her well below market for the same area). For the first couple of years, I had her sign one-year lease renewals, but I've been lax for the last few years, and she is currently renewing month-to-month.

What's the best way to raise the rent? Can I just send her a new lease with a start date of >30 days from now (let's say September 1) with a higher monthly rent? Or do I need to send her that AND an "Increase in Rent Notice"? I'd ideally like to get her on an annual lease again and not simply increase the rent on the month-to-month.

Thanks in advance!

[Charles Carillo]

@Jeremy Z.

Not sure about the laws of NJ, you always want to check with an attorney.

Do you want to keep the tenant? Many tenants will not stay for a 10% rent increase. I would not spring this on her but send her a letter first (with more than enough time to respond). I might also do a single-digit rent increase if I wanted to keep her.