My husband and I purchased a 2 family house that was fully occupied with tenants, intending to live in the first floor. The first floor tenant was very difficult to remove but we finally managed to get them out with a cash-for-keys agreement. Our 2nd floor tenant had no lease at the property, just a verbal month-to-month agreement. They were served a Notice of Rent increase on April 26th, with the rent increase starting on June 1st. The rent was increased from $1350 to $1800, since the comparable rentals in the area were renting for around $2200. We also included a few changes to the "lease" in the notice, as well as all the other requirements (demand for possession, termination of lease, etc). The notice was sent certified and regular mail as well as hand delivered. On May 30th we also presented them with a written lease, which they refused to sign.

The tenant informed us verbally and through text message that they would pay the rent increase but would be moving at the end of August to low-income housing. We had initially presented them with a 6 month lease, and after hearing they would like to move we offered a 3 month lease which again they refused to sign. Knowing they had accepted the rent increase, we were fine to continue with the month-to-month tenancy until the end of August. We also are aware they are under no obligation to sign a lease.

On June 1st, the tenant payed the increase in rent. On July 1st, they sent a text message saying they did not agree with the rent increase and gave us a check for $900, subtracting the "overpayment" from June and stating they would be paying the $1350 moving forward.

Our town does not have rent control (we checked prior to raising the rent) but we do acknowledge that raising the rent by 33% could be seen as unconscionable although NJ law does not specify a dollar amount or percentage on rent increases. Ideally, we would just like the tenant to move out, regardless of the new rent or not.

We have changed our mailing address to the property and have the utilities in our name, but are currently living with our in-laws while we renovate the first floor. Does this still allow use to use an owner-occupied non-renewal for the cause of eviction? Or, could we evict for non-payment of rent since the tenant accepted and paid the rent increase, then paid only $900 in June?

Any advice or information on similar situations would be helpful, as well as any eviction lawyer referrals would be appreciated.

Note, the town is not Jersey City - our town is not listed.