Rent increase to market, New Owner

[Linzey Ledesma]

Hello BP Family,

I officially closed escrow on my first duplex in Redlands Ca. I inherited tenants. One of them has been renting for 25 years and pays $800 month (market rent is around 1,200). The tenant is month-month (there is no actual rental agreement in place, just an estoppel that seller sent). My question is: can I renew or create a new rental agreement asking for market rent? If they disagree with the new rent then, can I terminate tenancy?

Any advice or recommendations would be appreciated.

Many thanks!

[Tony Kim]

Originally posted by @Linzey Ledesma:

Hello BP Family,

I officially closed escrow on my first duplex in Redlands Ca. I inherited tenants. One of them has been renting for 25 years and pays $800 month (market rent is around 1,200). The tenant is month-month (there is no actual rental agreement in place, just an estoppel that seller sent). My question is: can I renew or create a new rental agreement asking for market rent? If they disagree with the new rent then, can I terminate tenancy?

Any advice or recommendations would be appreciated.

Many thanks!

When was your property built? Unless it's a pretty new property (forgot the exact cut off), your property will probably fall under CA rent control regulations whereby you can only implement an annual increase in the amount of 5% plus a cost of living adjustment.