Non renewing with increase in lease

[Jason Bach]

I currently have a tenant whose lease expires in March. When we first purchased the property we inherited a lease that was far below market rate. When the tenants lease expired last year we renewed with a $75 increase (still below market, we were having a baby at the time....). When renewing the lease I wrote in the addendum the “rent will increase $125 per month upon renewal.” We now have the funds to remodel the place and would like to not renew because we feel, even with the increase of 125, we could still get more and also have the time to put our touch on it. Would there be an issue with non renewing? I fear the addendum I put it means if they are willing to pay the increase they stay.

[Jacob Sampson]

Originally posted by @Luke Carl:

@Jason Bach let them stay. I’d be in no hurry to spend a bunch of money turning a unit that sounds like it doesn’t really need to be turned. Do a walk through. See if it looks decent. Take the extra $125. 

My lease (which I got from BP) has a section for a month to month rent should the lease expire. Give them 12 months and put the month to month number at the market rate. 

A year will come and go before you know it.  

I have to agree here.  Take the increased rent and let them stay.  Don't be anxious to boot good paying tenants in order to dump a bunch of money into a property and hope you can fill it again with good paying tenants, again.  Do the remodel when this tenant moves out.