Month-To-Month Rent Raise Question!

[Justin Gomberg]

Hello all! 

I just recently closed on my third property (first duplex...yay!) This was managed by a PM prior and one of the units is on a month-to-month lease. I was curious what the right way to increase the rent is? 

I intend on giving them a 60-day notice on 05/01/2021 informing them of the rent change. If the tenants are ok with the rent increase and choose not to move out, is it customary to just start collecting the higher rent or at the start of the rent increase have them sign a new lease associated with me the new owner? 

I would feel more comfortable requiring them to sign a new lease at the start of the rent increase. 

If I decide to have them sign a new lease am I allowed to request their w-2 information and run background on them? I take screening tenants very seriously and hate that I assumed full responsibility for tenants I was never able to screen initially.

Thank you for all of your awesome help in advance!  

[Michael Robbins]

@Justin Gomberg I would first confirm with your State laws on the number of days notice must be provided to the tenant before increasing rent.  I would also double check on any rent caps etc... I only know the Henderson and Las Vegas market.

That being said.  It is important to refer to the current lease to determine if rent automatically increases once the lease expires and is on month to month.  For example, once the lease ends the rent goes up by 10% etc... Next, provide a new offer rate for the lease (assuming you want to renew the tenant) and I would also suggest informing the tenant you will be using an updated/new lease.  When I have taken over new accounts I like to use a new lease (not just an addendum) upon renewal.