Tenant has been in house for 3 years, I have never increased the rent in that time. Today I notified him that the rent will increase and tried to hand him a letter. He said "NO! Not possible! Give me 30 days notice and I will leave".
He is a good tenant, keeps the property very nice, but I am way behind the market rents by $300 - $600/mo.
Property is located in Lakewood, CA. I feel that it is a strong rental area right now.
What would you do?
2007-09-28 11:58:08 · 9 answers · asked by so_cal_tall 2 in Business & Finance ➔ Renting & Real Estate
Mary B gives some flippant remarks, she is either independently wealthy or still living at home, business is business if you back off your tenant will have the upper hand and he will use it. Do what you gotta do, I would
2007-09-28 13:41:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If he's not a hassle, keeps the property nice and I don't have an urgent need for the increased income I would keep him around.
Is he a lifelong renter? Or do you suspect that he will be moving or buying in the future?
How much did you try to raise it? Too much...budget shock?
1 month vacancy while trying to find another tenant may be more than the increased rent he would have paid over the next year. And there's always a chance they wont be as good a tenant.
Do you need to be in the market rent range? ARe you planning on selling and want rents to reflect higher?
I would never hand a rent increase letter. I would mail.
Also you would have to give him 60 days notice in Ca.
If it's not a big deal for you to find another tenant, then call his bluff. Mail the increase to him if he didn't take it and make sure he knows by this date rent is this much.
He may just pay because he doesnt want to move that big screen tv or spent what he had in savings to buy it and can't come up with deposits for another place.
Good Luck
Open Book Advisors™
2007-09-28 12:14:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Have them leave. I am a landlord. Your taxes have increased on your property over the years. The cost of living has also gone up. It is a shame these people aren't grateful for the time they have had this incredible rent. Their loss. Make sure you check the current rent rates before you set the rent for the next renter. I think you will find you can get MUCH more for your home than you think. Because the housing market has fallen so dramatically, there are many people that were home owners that now need to rent. The rental market is tight and rents are sky high.
2007-09-28 12:06:34 · answer #3 · answered by thirsty mind 6 · 0⤊ 1⤋
If he would not accept the rent-increase letter, which is well within his right to do (and you have got 3 years of rental income out of him), I would go ahead and give him a 30 day notice (just as he requested) and allow him to move out.
The tenant also has the right to NOT pay a higher rent and to move out. Just because you are "behind" in the market, doesn't mean it's within his budget to pay the increase.
2007-09-28 12:14:02 · answer #4 · answered by Expert8675309 7 · 1⤊ 1⤋
It's unfortunate that your current tenant does not want to stay in your property. Really the decision is this: do you want more money and to have to find a new tenant or do you want steady money in the amount you already have and a reliable tenant. Its really up to you and how much work you are willing to put in. Finding a new tenant could involve a lot of work. If you are willing to do the work to make more money per month, than its worth it to you. Good luck with your decision!
2007-09-28 12:07:13 · answer #5 · answered by jml167 4 · 0⤊ 0⤋
Give the tenant the 30-day notice and get another tenant. Maybe he's calling your bluff. If he isn't, then get another tenant who is willing to pay the market rent.
2007-09-28 12:03:34 · answer #6 · answered by peaches6 7 · 1⤊ 0⤋
If your rent increase was 10% or less, you can do that every year. Let him find a similar place at a similar price - he won't be able to and he'll gladly pay what you ask.
If he changes his mind & decides to stay though, I'd tell him you changed your mind and jack it up to full market price. That's what he gets for being an @ss-clown.
2007-09-28 14:08:57 · answer #7 · answered by Roland'sMommy 6 · 0⤊ 0⤋
Well you have a choice, you can force a lease situation on them and make them sign it, or see them leave. If they are month to month, again tell them they will have to sign a lease or vacate in 30 days. You have the right to increase the rent when there is no lease.
2007-09-28 12:02:35 · answer #8 · answered by Anonymous · 0⤊ 1⤋
he should be grateful you haven't raised the rent until 3 years later..my landlord raised mine every year...let him vacate the premises..you'll earn it all back anyway...!!
2007-09-28 13:51:36 · answer #9 · answered by baebeecakes 3 · 0⤊ 0⤋