Need advice as a renter

[Robert Ferrell]

Hey everyone, this is the situation I'm facing right now. For the past 15 years my mother and I have lived in one unit of a duplex. Weve been excellent tenants and have always paid rent on time. Recently, the owner of the buliding sold to our neighbors in the back half of the duplex. This neighbor gave a verbal agreement to us that he would not make any changes and always be willing to work with us because he knows our situation (my mother is on permanent disability and section 8) and also because he knows we're good and reliable people. 

Now, about 3 months into him being the new owner he has brought up some issues about how "unfair" it is that we pay such little rent, a number that he knew well before purchasing the property and a number he well knew when he offered his verbal agreement, granted, it is pretty far below market. This is mostly because he got himself into an extremely bad deal and pays a ridiculous mortgage. And is now demanding a $200 increase in rent or possibly less with exceptions such as we will no longer have use of the driveway or front yard or side yard storage. 

I understand we have been lucky with owners in the past and our rent not being increased too drastically over the time we have been here, but is there anything we can do to counter this? Does the verbal agreement mean anything? And can a landlord restrict certain areas off from use like he has proposed?

Any suggestions or info would be greatly appriciated. We really dont want to have to move, mostly because moving costs alone would be nearly impossible, not to mention a first and last months deposit on any new place. So any advice will help. Thanks.

[Shawn Davis]

Hi Robert - The first thing you need to do is pull out your lease and see what it says regarding lease term.  If you are still within the timeframe of a term lease then the rent cannot be raised until the end of the term.  If the term of your initial lease is long past (or you don't have a written lease) then you are on a month-to-month and the new landlord can raise rent with the proper notice for your area.  You say yourself that your rent is well under market.  That you think the new owners purchased at a bad price is completely irrelevant.   If the property supports a higher rent then someone will pay it.  If you like living there then maybe that person will be you.  If not, you are free to leave with the proper notice.  If it has been a while since your rent has been raised you might be in for a nasty surprise about what market rent is.  Rents all over the country have gone up considerably in the last few years.  Landlords typically like to keep good tenants so if you and your mom are good tenants, then you might find that the $200 increase would still be under market and fair given market rents in your area.  Finally, keep in mind that there are ongoing costs to maintaining a property that might not be readily apparent to a long time renter.  The rent you pay isn't all profit to your landlord.  There are a lot of expenses involved.  Take a few minutes and look on Craigslist at what your rental options would be if you decided to move. You might find that you have nothing to complain about or you might find a nicer place for a price that you are willing to pay.  Good luck to you and your mom.