Rent Increase Notice- owned property 4 months

[Matthew Keyes]

Closed on a property in march- 3-unit fully occupied.  They were all midway through their leases which were transferred over, new leases were not signed.  I just gave a tenant 60-day notice that I was raising rent as her lease ends 8/30/21.  She informed me that she has been there 3 years and needed to notify her 90-days prior.  I was aware of the 90-day period but was not aware she had been there for that length of time.  Do I have any options, it is not feasible to allow her to renew the old lease as it is $400/month under market.  I would be ok extending her lease an additional month if that is a legal option.  Thanks in advance!

Best,

Matt

[Matthew Keyes]

Quote from @Bill B.:

I ASSUME, and you will know when you talk to a lawyer, what proper notices are and what happens if the lease ends without any adjustments. Of course these are things you should have know before buying. I will add this si also why I often give people 90-120 notice. You could have given notice the week after you bought. There’s zero downside to you and only upside. The tenants probably know if they’re renewing. If they are great, now you know,they aren’t? Great, now you know. 

So that fixes future events, you learn notices and lease end options and you start giving 100-120 day notices so you’re covered. 

In this case you state may vary and your lawyer will let you know. In NV when a lease ends it becomes MTM if nothing new is signed. So I would let it become MTM and notify the tenant that October first their rent is going up $500, I might even go November first to make sure I give plenty of notice and I’ll be making it up with the increased rent anyway. I have no idea what happens in NY. Hopefully it doesn’t auto renew as another year. If so you learned a $4800 lesson about why you should study markets and their laws before buying and give notices earlier than legally required. 

I appreciate the candor and wealth of information.  I may not have been clear but I am familiar with what requires a 60 or 90 day notice,  I was not familiar with the length of her tenancy as her current lease is only a 1-year.  Going through our due diligence again it does not appear she has been there as long as she states either.  I did find my answer though and it looks like she will get an additional 30 days at her current rate.

I definitely do agree though, nobody should buy real estate until they know every single carve out of their State’s real property laws.