Am I obligated to to renew tenant lease

Am I obligated to to renew tenant lease

Real Estate Investor · Central New Jersey · Member since 2015 · 67 posts · 29 votes

Tenant lease is ending June 2019. I don't want to renew it because of all the issues I've had with him. (Had to take him to court to get the rent. He wouldn't pay the rent because he says I'm too young to own property. He is also creating hostile environment for the tenant upstairs).

Based on NJ law can I choose not to renew the lease or am I obligated to renew his lease? If I am obligated to renew, what's the maximum I can charge him. His current rent is $800 per month. Can I jump to $900 per month or is that considered too big of a jump.

Honestly I need to get him out. What is a legal way for me not to renew his lease?

All responses are appreciated.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
7y

Check the local laws for rules on rent increases, but I can't think of any situation where you'd have to renew his lease.  Give him proper notice (30 or 60 days depending on the wording in the lease and local rules) and do not return his security deposit until he's moved out and you've done the inspection.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    Check the local laws for rules on rent increases, but I can't think of any situation where you'd have to renew his lease.  Give him proper notice (30 or 60 days depending on the wording in the lease and local rules) and do not return his security deposit until he's moved out and you've done the inspection.

  • Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    @Sheltocks M. I’m not an expert on NJ laws, but I do know they are different from most other states. So make sure your answer comes from someone who understands NJ laws.

    Good luck!

  • Real Estate Investor · Central New Jersey · Member since 2015 · 67 posts · 29 votes
    7y

    Thanks much for your responses. I will most definitely investigate further and follow through. Appreciated. 

  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    Your age should have no relation to being a landlord. As a landlord your are responsible for knowing all your state landlord tenant codes. Take a read through your copy, you will find the answers to your questions in the regulations.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    @Sheltocks M.  Not sure if there are local codes, but here's a link to the state rules both for people on leases and month to month.

    https://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/lease.pdf

  • Philadelphia, PA · Member since 2019 · 174 posts · 124 votes
    7y

    No residential landlord may evict or fail to renew a lease, whether it is a written or an oral lease without good cause. ... This bulletin outlines the good cause grounds for an eviction of a tenant from residential rental properties in New Jersey, pursuant to the Anti-Eviction Act, as set forth in N.J.S.A. 2A:18-61.1.

    Here are the requirements the state has for "evictions".  I put it in quotes because NJ requires that you renew the lease so they use the term "eviction" liberally

    https://www.nj.gov/dca/divisions/codes/publications/pdf_lti/grnds_for_evicti_bulltin.pdf

  • Rental Property Investor · Long Island, NY · Member since 2015 · 490 posts · 301 votes
    7y

    Some townships have a maximum that you can increase rent on a given lease even on a smaller property. Whether yours does or  not the tenant can argue in court that the rent increase is unconscionably and youll have to go to court to argue that it is not unconscionably and thats  a headache. So check your townships rent control guidelines because if he goes to court and wins your still going to be stuck with him and it will be for nothing. If hes such a nuisance you can try to evict him for violating other terms of the lease which it sounds like he probably has. Time to consult with your L&T attorney on the best way to handle this.

  • Real Estate Investor · Central New Jersey · Member since 2015 · 67 posts · 29 votes
    7y

     All:

    Thanks so much for your input and advise. After looking at the link and researching on the web, I've decided to get a lawyer so that I ensure he's out legally. 

    I truly appreciate your time and attention to this. Will let you know how it works out. Thanks.

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    @Sheltocks M.  You need to have a defined list of tenant rules and expectations.  If the tenant does not follow these rules, then you have the grounds to evict/ask them to leave.  One of our rules is that the tenant must pay rent in full, and on time, each and every month.  If the tenant is late even once, then we have the right to ask them to leave.  

    Define your handbook and always refer to that when/if you decide to ask someone to leave.  Refuse to renew the lease because he has a history of late payment.  Leave it at that and you won't have any issues.

  • Real Estate Investor · Central New Jersey · Member since 2015 · 67 posts · 29 votes
    7y

    Thanks Michael. Will do. Appreciated.

  • Rental Property Investor · Levittown, PA · Member since 2016 · 109 posts · 97 votes
    7y

    @Sheltocks M. i agree with @Michael Ablan 

    How thorough of a lease do you have?  

    I also have some rental properties in NJ and my lease agreement is pretty thorough and spells out the expectations of rental payment. 

    Based off your comments saying that you had to take him to court to get rent....that sounds like he has automatically been in violation of your agreement!

    Moving forward, make sure you properly document all issues with your tenants.  You never know when you may need to present the facts.... 

    I would not renew this tenants lease. 

    Best of Luck!

  • Investor · Springfield , NJ · Member since 2017 · 192 posts · 93 votes
    7y

    @Sheltocks M.

    Glad to hear you are getting a lawyer. You have a few options but not renewing just because is not a legal reason in NJ.

    You can raise the rent a reasonable amount and/or make reasonable changes to the lease. If they refuse to accept the changes you can evict.

    You should also be documenting all the lease violations (paying late, disturbing others, etc.). This is also grounds for eviction but you have to follow the rules EXACTLY.

    You can read this article about the legal ways to evict in NJ to help prepare for your lawyer visit. But obviously go with what your local lawyer tells you. http://accidentalrental.com/evict-a-tenant-nj/

    Good luck!

  • Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
    7y

    I believe in New Jersey you must renew the Lease, if Tenant wants to stay. As for rent increases, a) are there rent control laws in the town where the property is located; and b) if you raise the rent too high, the Tenant could conceivably sue you for Constructive Eviction. and seek damages. New Jersey is tenant-friendly and has Anti-Eviction laws. Tread lightly....

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