How to temporarily reduce rent until lease expires

[Graeham Ford-Feliz]

My property management company left things out of the lease and the tenants filed for mediation and are asking for below market rent.

It hurts, but I'm okay taking the hit on the remaining 6 months of the lease, but want to protect myself from being subject to California rent control if the tenants stay beyond the initial lease.

I don't want to be stuck below market for any time beyond the initial lease.

The tenants are college students with lawyers for parents/co-signers (adding this to my book of red flags!).

How can I, in a way that will uphold in court, reduce rent temporarily for the remainder of the lease and then be free to set rent back to the original rent price at market rates?

[Nathan Gesner]

@Graeham Ford-Feliz take everything with a grain of salt because I'm more experienced and I'm in a state with courts that still act reasonably.

1. This problem was caused by your PM. As licensed professionals, they should know the importance of disclosure. I would require them to reimburse you for the deduction in rent (if any).

2. Don't give away the farm. This is a minor inconvenience and not earth-shattering. It sounds like these kids are spoiled and their helicopter parents are swooping in to save the day when it's really not a big deal. A $100 discount may be reasonable but 20% is not.

3. Offer to let them out of their lease and start fresh. Getting rid of attorneys, people related to attorneys, or people threatening attorneys will be a good thing.

4. Just because they are attorneys doesn't mean they have a case or that you should be afraid. Then again, you're in California so you probably should be additionally cautious. This may be a situation where you contact the tenants (in writing) and tell them you apologize for the inconvenience, that the property manager is no longer involved (don't admit they made a mistake) and that you are contacting your attorney for a legal, fair way to move forward.