All Forum Posts by: Matthew E.

Thanks for the replies.   

I'm definitely trying to keep it professional. The rent increase was a brief l one paragraph letter stating they've been great tenants, so we don't intend to raise it to market rate, but we need to raise the rent to keep up with rising costs of owning property in the area. Left it at that.

But they are trying to make it personal. Sent a lengthy letter explaining all the reasons it's unfair etc...and that they can't afford it and proposed doing a $200 increase...and contacted my aunt to plea their case. Luckily she's good at deflecting it and telling them to contact me.

And market rate really is $2700. We rented another vacant unit at $2650 in 2 days. If they want to stay at $1950, I'm happy with that. But yes, might be a blessing if they choose to move on. 

I'll reply to their letter saying I sympathize, but it's still a bargain at $1950. And provide some comps. And leave it at that.  Is that better done via email for a record of the conversation, or is a letter better?

Need some advice on how to handle a tricky situation. 

This year I took over managing a few rental properties for my elderly aunt. She has a 4plex (all 2 bed, 1 bath) in the SF bay area that she's owned since the 70's. One tenant has been there for 20 yrs, and my aunt has barely raised rents in all that time....last time she did it was $10!   Market rate is $2700 in current condition. 

This tenant is paying $1300. Currently there is no rent control in this county. All that's required is 30 day notice for anything under 10% increase, and 60 day for over 10%.  They're nice people, but I can't justify giving them a 50% discount on their rent any longer. I sent them a rent increase notice bringing it to $1950 in 60 days....still a $700+ discount because we like them. They are arguing it's unfair and want a justification for the large increase etc... And saying that they can't afford it. I don't think they're all that aware of the current rental market.

How do I respond to this? I don't want to cruel, but it is a business for our family. And there is a chance rent control could pass this year, so I can't risk keeping it that low.