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Updated over 5 years ago on . Most recent reply

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Raising rent vs adding fees

Posted

Hey BP community of Rental Property Managers! I need advice (as always...)

My SFH is in MD and my tenants lease is coming to an end next month. At that point, they will automatically be going on a month-to-month lease as their current annual lease states. But once their current lease goes month to month, I wish to have them sign a new lease. Well I really want them to find somewhere else, but that's a different discussion. My question is: If their lease states that rent can only be raised no more than 5%, if they renew, can I end their lease and just have them sign a new one in order to raise it more than that? It is not that I am trying to guage anyone, but I realize that the price they are being charged is way too low, and the home cannot handle all the people they have living there. I have had to replace the septic system and the roof all in my first year of renting this place out. The roof is not their fault, but the septic problems are largely because of them..If I am unable to raise the rent any more than 5%, am I able to have them sign a new lease with addtional fees? Like, for instance, a septic fee? I paid to have that thing pumped 4 times in 3 months this year, because nothing was stated in their lease about additional fees, so I feel like there was nothing I could do but pay to have it pumped, as the toilet kept backing up.Now I am $20,000 in the hole and I am years away from even breaking even on renting this place out. Thanks for any advice!

Morgan

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