All Forum Posts by: Wesley W.

I wouldn't think so, but I would make it a point to be well versed in your local laws.  A lot of these things should be spelled out in your lease.

25. WAIVERS: Our acceptance of Rent after knowledge of a breach of this Lease by you is not a waiver of our rights nor an election not to proceed under the provisions of this Lease or the law. Our rights and remedies under this Lease are cumulative; the use of one or more shall not exclude or waive our right to other remedies... 

I would also get to know a reputable landlord/tenant attorney in your market.  They are worth their weight in gold when the rubber hits the road.

Well, they could do any anyways, but having a BK on their file increases that chance quite a bit.

It's possible that "back rent" may be discharged under a BK.  I am not an expert on that process, but the question remains:  why are you entertaining taking this additional risk?  Are you allowed to collect several months' rent in advance in your jurisdiction?  If not...

I'm glad I'm not the only one who thought this.  "Eventually paying rent including the late fee" does not a good tenant make.  Coming from a landlord, "at least they are paying" I think, reinforces a negative stereotype in our industry.

If they do not have respect for this part of your signed contract, they will also flout other parts - whether or not you are aware of it.

I would press them for a notice to vacate in writing for May 1, and if they hesitate at all, I would make sure you issue you own notice to terminate/non-renewal in plenty of time to be compliant with your jusidiction.

I think you know this already, but I would not have let them go this long without paying for damages.  In my lease, the invoiced damage is due as additional rent on the very next month.  So, they would have a balance due and owing if they did not pay.

Let's hope they get out of there without too much more of a loss for you.  We'll see.

Are you concerned that they have once again delcared bankrupcy?  If they do so while owing you money, you (a) may get that debt owed discharged, and (b) they may or may not be compelled to move out of your property. (i.e. they may have back rent discharged by the court, but they are still living under your roof.)

Aren't there other applicants whom are qualified that will rent your property?  You are taking a business risk by signing a contract with them.  As long as you are aware of that, you are free to rent to whomever you choose.

I get that you guys are critical of the lack of tact the OP has shown here.  I think that point has been taken.  But I'm a little bothered by the notion of the "heartless", "egregious" etc. comments about the raise.  Perhaps the mistake was not keeping the rent near market, and now doing the "market correction" - but the market rate is the market rate for a reason.  This is what housing costs these days.  Property owners have operating expenses that are rising just as fast as everything else in society.  Every other industry is passing those costs on directly to the consumer.  What other choice do they have if they want to remain solvent?  When eggs doubled in price in the blink of an eye did you scold your grocer for being "heartless"?  That's what things cost.  Blame Putin, like some were trying to do a bit ago. ;)   Not raising the rents to market is just subsidizing someone else's lifestyle at the expense of your own household.  We are living in inflationary times.  It frustrates me that landlords are held to a different standard than the supermarkets, gas stations, and cable companies.

I guess the more diplomatic thing to do would be to issue a notice to vacate for a protracted date (90 days was mentioned) with no raise, and then part ways.  It seems evident that this tenant can no longer afford an apartment like this, so this would give them a time to come up with a plan to find an alternative.

Time is money.  I would issue a notice to terminate and end the madness.  It's only a matter of time before a minor financial emergency pops up for them and you'll have the time, energy and expense of an eviction on your hands.  At least with the termination it will be on your terms and timeline.  This also why I only offer MTM leases.

Good luck!

If your lease is silent on it, it would default to your local or state statute.  I would research that and see what the requirements are.  In many locations, the important aspects are method of notice and the time between the notice and the rate going into effect.

As others have said, I would double check the above, but then send two copies of the notice - one first class and one certified.  That way, if they are not BOTH returned you have a reasonable assumption that they have been notified.  (Again, check your local laws to make sure this is sufficient.)

Also - unless the laws under which you operate say otherwise - you are "notfying" them of the increase.  You do not need them to agree.  You are changing the terms of the contract with proper notice.  If that doesn't work for them, they are free to give a norice to vacate.  (Practically, expect an eviction proceeding with this situation, and be pleasantly suprised if it doesn't come to that.)

Lastly, make it a point to make each mistake only once, so tighten up your leases moving forward so everything is crystal-clear for the next time.

Good luck!

In my experience, inherited tenants almost never work out.  My acquisitions have been from mis-managed/tired landlords of C+/B- small multis, so as @Bjorn Ahlblad and others have said, the type of asset class and quality of the management are probably the primary indicators.

I would offer them a month-to-month lease with my own terms, and see of they presented a generally agreeable/compliant kind of demeanor in the near term before proceeding to a term contract.

FWIW I only offer MTM leases because I believe term leases often favor the tenant more than the landlord in tenant-friendly areas.

It's almost never a good idea to have tenants do their own improvements, for the reasons mentioned as well as the potential liability exposure you'll have to a personal injury claim.

If the improvement the tenant wants is something you think will be valuable in marketing the unit in the future, you should sign a written MOA with the tenant, outlining the terms.  I typically have the tenants pay me for the retail price of the materials, and I contribute the labor.  But upon completion, the improvement becomes part of the building and the tenant concedes any ownership.  Here's an example:

THIS ADDENDUM IS HEREBY MADE A PART OF THAT CERTAIN LEASE AGREEMENT EXECUTED ON March 1, 2015 BETWEEN John Smith (“Tenants”) AND Joe Jones (“Agent for Owner”)

Rental Unit Address: (here)

At Tenants’ request, Property Manager will install a screen door on rear doorway of Tenants’ unit (Apartment 1S).

Tenant will submit payment in advance for materials purchase, and Property Manager will purchase materials after payment is made. Labor for installation will be provided by Property Manager.

Upon installation by the Property Manager, the screen door becomes the sole property of the Landlord. If/when Tenants vacate the rental unit, the installed screen door will remain as part of the Premises and no reimbursement to Tenants will be issued.

The seller should have sent a letter naming you as the new owner and informing them of the pending transaction.

Here's the letter I use as the buyer, which should complement the seller's letter:

Dear (tenant):

We are excited to announce that our company is in the final stages of purchasing the building within which you reside, and I’ll begin managing the property on August 12, 2022. Being a local company, providing quality housing and great service is very important to us.  I look forward to continuing to maintain your address with the same pride and quality that Ms. Peterson has taken in it over the past 19 years.

We are hereby cancelling your existing month-to-month tenancy effective September 31, 2022. Enclosed in this envelope is a new month-to-month lease agreement for you to sign, effective for October 1, 2022. In the meantime, please completely fill out both the Rental Application (included with this letter) and the Lease Agreement. I will make arrangements to come by and go over the lease with you sometime next week.

This new lease will provide you with important information regarding our company’s policies. This lease does not change the length of your lease term (month-to-month); it simply updates relevant matters now that I will be assisting you with your housing needs.

Beginning with rent for the month of September, please pay your rent by depositing the entire amount into the following bank account at (your) Bank: account # 123456; routing # 123456. We do not accept rent checks at our P.O. Box; rent can only be paid by bank deposit.

For your convenience, the nearest location to your home is 123 Main Street, (City), or you can execute a bank-to-bank transfer using the routing number provided.

If you have any questions, concerns or maintenance issues, you may call or text my cell phone at (your business number), or you may email me at the address listed at the top of this notice.

Please don’t hesitate to contact me with any questions about this transition or any other pertinent issue.

Sincerely,

(you)