Lease renewal and tenants

[Carolyn Keller]

First lease renewal. Have single family home, on one acre, In PA there are no guidelines for amt. of increase. Not section 8, both tenants work. 

Looking in the area at available rentals that are similar, i decided on a 5 % increase. Also taking over the garbage and recycling costs which tenants were paying every quarter.  

Property is pretty hilly. Tenants hired on a landscaper, as it is their responsibility to trim bi-weekly and were paying monthly. I offered this year to cover that with an additional 4 % on top of 5 %. Not a drastic increase, but i find my tenants naive, they said there is a yearly increase? 

were talking total increase would be $82.00 per month, $993.60 A yr. They are, happily, under current lease paying out of pocket an extra $1400.00 a year between garbage, recycling and landscaping, on top of monthly rent, gas, electric, water.

I know most properties that have a land, tend to include landscaping, and garb. recycling. But my question is, while $ 82.00 a month seems like a lot, but I am taking a lot off their hands. Even at the increased amt. rent is still under $1,000.00 a month. 

Can keep them paying for all the little side items and only raise rent 2 or 3 % but they have not shown me, as young people that they can be on time with the extra payments and they didn't hire a landscaper until i told them they were breaking the lease and the Township code was a problem, grass was higher than 6 inches four months after they moved in.

Just sent a the official notice of rent increase, 90 days, never really sure if they are committed to staying because they "love it". They don't complain, and i check on them regularly, but they funny/strange. Don't like new handymen, workers coming into house even with two weeks plus notice. Then after moving in over one week before lease start date and house alarm went off, i called cops, and they said why were the cops called?! 

Am i doing the right thing? Want to avoid them moving, dont think they will, but also need a certain degree of informal respect.

[Thomas S.]

The relationship you have with tenants is based on how you train them. If they are not working out you will need to change tenants.

Your post is very convoluted. You are suggesting that you want to raise the rent but are taking back responsibilities that they are presently paying for. This does not make scenes.

You raise the rent based on market depending on what is included in the rent and what additionally the tenants pay for. 

Decide what you want to do then raise the rent accordingly. If they decide to leave you have the opportunity to find new tenants that are willing to pay market. Good tenants far out number bad tenants, generally a 9 to 1 ratio, so there should be little problems if you understand how to properly screen.