Tenants do not vacate after lease expires

[Brad S.]

Lease will end at the end of May. I offered a renew at the end of March, there is $100 increase on the renewed rent, but it is still below market. In my renew notice, I said tenants either renew or vacate at the end of the lease, no month to month option is offered.

At begining of May, tenants say they do not know whether they will renew or not. If they do not renew, they will extend to stay for 2 more months and move at the end of July.

I emailed last Friday asked if they can make the decision soon, because I need to list the property if they decide not to renew. Further delay will only make my next lease starts at a later date, that will make all the following years difficult to rent or sell if the starting date is from August. Tenants emailed back said "stop pressuring them, I need to stop meeting with my realtor until the end of the May to list the property, only at that time they can make the decision". Also in the email tenants said I need to make sure to read and understand his message.

How should I handle this?

1) Even though I increased $100, my renew offer is still below market price, can I cancel my renew offer and not renew any more even later they decide to? I do not like to rent to people who take things for granted. They think they can just extend to whenever they want, without even asking if I agree or not? Also once I list with the realtor, I will no longer be able to offer the below market rent, it has to be the market rent, which is much higher.

2) If I do let them extend, can I set any rent to compensate my loss? Current rent is $2500, renewed offer is $2600, can I set the next two month for $3000 each? If they do not agree on $3000, then what?

3) Lease said if tenants holdover after lease expires, he should pay three times the rent for penalty. I talked to attorney, he first said when lease expires if tenants still stay, we will slap him hard. Then later he said it is difficult to get the penalty. So the lease term seems to be useless.

Please help with your suggestions and advice, thanks in advance !

[Arissa Pedroza]

Essentially you have given them sufficient notice that you will be increasing the rent $100 at the end of the current lease.  Double check with your lease to see what it states about renewal, but it sounds like you have given them notice and if they don't move out, you have the right to collect the extra $100.  If they short you the $100, I would post a 3 Day Demand to Pay or Quit on the door for the $100.

You can also enforce the holdover clause because it is in the lease.  Again, post a 3 Day Letter if you choose to go that route.