New lease agreements and increasing rent

[Bruce Shiba]

Context: House hacking with an owner occupied single family dwelling. One of my tenants lease will be up in June 15. Currently, month to month rent is the default option after the lease expires. 

I'm wondering if a) I can increase rent at all (or did I need to give notice 2 months in advance) and b) if the tenant signs another lease, can that be for higher rent (annual, month to month, etc.)

Essentially, I want a higher monthly rent payment for the increased exposure of not having a tenant for the entire year. 

Can this be done?... or does the existing lease that defaults to month to month supersede a new lease that's month to month?

Thank you!

[Kyle J.]

@Bruce Shiba I see you’re house hacking a single family in Sacramento. Fortunately, since you also live in the house, that makes you exempt from both Sacramento’s local rent control (Tenant Protection Program) and California’s statewide rent control (AB1482).

Now, with regard to how to raise the rent, after the lease expires and it transitions to a month-to-month (MTM) agreement, you are free to raise the rent by any amount you choose. 

If you decide to raise it 10% or less, you need to provide a 30 day notice. If you raise it more than 10%, you need to provide a 90 day notice. (Note: The 90 day notice just started this year. Previously, increases over 10% just required a 60 day notice.)

Whether or not you sign them up on a new lease, or keep them MTM is up to you. Personally, I like to keep mine on a MTM after the initial lease expires because it’s more advantageous for the landlord and I can raise the rent more often than once per year if needed. Plus leases tend to benefit the tenant more than the landlord. But good luck with whatever you decide.