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Updated 8 months ago, 03/23/2024
rent increase on tenants
hello, i was wondering on what to do when i have an existing tenant already living in the unit i bought for a rental property that gets beligerant when told the rent was going up after i took ownership. what should i do in this case?
#2 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
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#2 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Los Angeles, CA
I'm going to assume that their lease is either up or month-to-month and you have the legal right to raise rent now.
I'd let the tenant know that they don't need to pay the increased rent and are free to move out. But, this is the new rent and it's not negotiable and just like everything in life, if you're not happy with the price, don't purchase the product.
And if you feel like it, let them know you won't take their attitude and next time they get snippy they will be gone.
I would raise it higher. If you're difficult to deal with or require extra handling (i.e. pays each month's rent in 2 or 3 payments) there's a $250 upcharge on what the rent increase would be normally. Leave or stay it's a game I like to call Melanie Wins.
Hello Gustavo Tellez in Philli. Your saying you really don't know if you can raise the rent and you just bought the property? Ding Dong! First thing is to know the local Law based on the Rental Lease that you hold. Every day I wake up to look at Google News and there is at least one article about Foreclosure, or Fixed Income Tenant can't stay where they have been from before the Covid or the Widow who has lived in the 2/1 house for 50 years cannot pay the increases in Property Tax, Home Owner's Insurance, Lights, Water and everything else. Remember, we just came out of up to THREE YEARS of Rent Moratorium. I think in Oakland CA, they still have renters not paying and owners not being paid with new extensions on the Moratoriums. Your Renter may have not paid for two years and now had to start at the rate from three years ago...insane stuff.
#3 Managing Your Property Contributor
I agree with Greg. If the lease is up (or coming up for renewal) and you've given them proper notice and are following the local rules (eg if there is a cap on rent increases); tell them they are free to give 30 days' notice and find another place.
Thank you all, they are month to month so they are going to leave :) very helpful when I found out I could pay them a couple hundred bucks to leave and remove the headache completely from my life :) that’s a win right!?
- Real Estate Broker
- Cody, WY
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Quote from @Gustavo Tellez:
Thank you all, they are month to month so they are going to leave :) very helpful when I found out I could pay them a couple hundred bucks to leave and remove the headache completely from my life :) that’s a win right!?
I notify them of the new rent rate. They choose to accept it or move out. I don't understand why you had to pay them anything, but I'm glad it worked out.
- Nathan Gesner
Hello Gustavo Tellez. You always want to find the quickest way to get a Tenant problem resolved. Time is Money and Tenants are a Pain. If the Law and Rules and Lease do not get them to agree to move, you can always Offer to Buy the Keys! In a pinch offer to Pay for a Moving Truck and come over to load the Deadbeats out as soon as possible to get on with your Business.
First, learn about the city's rent control rules. Then, if your lease allows it, send a written notice about the increase, explaining why it's happening. Be respectful and try to talk openly with the tenant. If needed, consider mediation to solve the issue. Eviction should be the last option, and it's crucial to understand the legal steps involved with help from a lawyer.
#3 Private Lending & Conventional Mortgage Advice Contributor
- Investor
- Las Vegas, NV
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#3 Private Lending & Conventional Mortgage Advice Contributor
- Investor
- Las Vegas, NV
Now hire the best PM you can find. They will save you time and money and probably even pay for themselves in money alone.
Hello Gustavo, No one is telling you to know the Rules for Eviction. The day your Tenant is Late on the Rent you need to start Eviction Notice. In Florida you put up a Three Day Notice on the Door or pay a Service Agent to try to get Personal Service. Don't wait! If your Tenant wants to object to pay the Increase in Rent you decide to begin Eviction with the Notice so that they know you are playing for real. Then, if they still refuse to the increase in Rent and they have been Notified that they have to move, ask them if you can pay to have them move. One months Rent etc. Whatever it takes to get them to go TODAY! Don't wait.
Gustavo you always need to take a witness with you when you are dealing with a beligerant Tenant. Be ready to call the Police if they start a push and shove. For real. This is no time to fool around with Tenants.
Quote from @Gustavo Tellez:
Thank you all, they are month to month so they are going to leave :) very helpful when I found out I could pay them a couple hundred bucks to leave and remove the headache completely from my life :) that’s a win right!?
If you are paying cash for keys a very important stipulation is that they do not receive the cash until you receive the keys and they are totally moved out.
