Tenants Ignoring Rent Increase

[Joe Martella]

Ok, so I have a question for all the experienced landlords out there.  I have tenants that have been living in one of my properties since October 2018.  In October, 2020, I informed my tenants (about 6 months notice) that effective April 1, 2021, their rent will increase by $50 if they enter into a 12 month agreement, or $150 if they remain month-to-month.  Mind you at the month-to-month rate they are still $200 below monthly market rent.  I asked them to let me know their decision (move, month-to-month, 12 month lease) by March 1, 2021.

I had a follow-up text conversation in January reminding the tenants about their pending decision.  They responded that there are cheaper units for rent in the area, and sent me examples that were apartments, not a single family house.  I invited them to move.  Anyway, April 1, 2021 comes and I receive the rent check with the old rent payment.

I texted the tenants letting them know that they are $150 short and sent them an invoice for the remaining $150 with a note that there is a $50 late fee that will be charged April 10, 2021.  To date, no communication.  I do know that getting something is better than nothing in this market.  Has anyone encountered this?  What would you do?  Keep in mind that this is in New Jersey.

[Justin Hoggatt]

It sounds like you didn't get any agreement signed.  Do you have an official notice that you sent them?  Are they still on a month-to-month?  I'd give them the papers to move, which is the 30-day notice to get out.  That's the nicer way to do things, but if you want, give them the the demand to pay - although for an eviction over $150 the judge might only laugh at that.  If your market rents are even higher than what you had raised them to, then they aren't worth it and they are now a headache and I'd make the move to move on from them.