rent dispute over $20 increase-what to do?

Question

Tenants have been renting for 4 years now ALWAYS on time...They are perfect tenants. However, i noticed the lease states rent is $ 895.00 a month, NOT $875.00

I just noticed this after 3 years (I know). I asked them to start paying the agreed amount on lease and they said they have been paying the lesser amount for 3 years and i accepted it so it should continue till end of lease (another 16 months).

Am I unfair to ask more? I don't wan to rock the boat as they are good tenants but they did agree to the higher amt when signed lease .

What would you do??

Joel Owens · Answer

Did you create the original lease or was this lease signed and you inherited the tenant??

When you buy the tenants should have signed an estoppel stating rent they were paying and amounts. It's best to have this notarized by parties on the lease prior to closing.

You have owned this property you said for years and are now just looking at the rent amount in the lease? Do you know how that sounds?

How low is your rent compared to others in the area? If your rent is 895 but everything else is 1,200 the tenants have less leverage to not agree unless this is a rent control unit. If rents are 900 for the area and you push a 20 per month increase to 895 they might leave for a better property. If they lived there for awhile you might have thousands in repair costs to get rent ready again plus lost income from being vacant.

Usually after the first year the lease goes month to month where you can make changes unless your lease states otherwise.

If it's a pro-tenant state a judge would eat you alive in court not knowing what the lease says for years after buying and accepting the 875.

No legal advice given.

Rick H. · Answer

Add it to the back end.

You've accepted "short" rent but are not forgiving it.

When the current lease is up, you have something to either negotiate when you increase the rent or create an additional fee or pass thru cost equal to or greater than the cumulative  rent shortage + increase.

You sell it based on your increased cost of X (taxes, insurance, etc.) and chuckle about some politician's wasting everyone's money.

At the end of the say however, tenant needs to know that they are renting, that you are running a rental business and have a money partner (your cat or ?) who is a stickler.

Don't bring up catnip because you'll reveal your partner.

Alexander Felice · Answer

4 years of on time payments would have easily been worth $20 a month to me. Kick them out and send them to me, I'll give them a discount AND the current landlord won't notice since she wasn't charging them the correct amount anyway.

solution here is simple: give them the discount until lease is up. you have no leverage.

Jacob Sampson · Answer

For great tenants?  Let it go.  That is $240/year. 10 days of vacancy eats up any gain.  For great tenants I rarely raise rent unless my costs have actually increased.  Once the lease is up you could raise rent a bit but honestly, I wouldn't even do that.

Marci Stein · Answer

Thank you everyone, I thought I should let it go also-

just checking on the expert advice here.

Yes, Joel---I know how it sounds...but not sure what your point is.

Russell Naylor · Answer

I'd let it slide considering this has been going on for so long. If you were 3 months into this, than maybe you should enforce it. Hate to take a good tenant and potentially make things rough or tense for a few hundred bucks.

Jason V. · Answer

@Marci SteinI'd let it go for $20/month. Most landlords would happily pay $720 to have awesome tenants for three years.

rent dispute over $20 increase-what to do?

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