Is a new lease required when raising rent?

[Dan Rosen]

I have some long-term tenants who are month-to-month, and I've never raised their rent. I need to raise it now, since it's significantly below market. Two questions about this:

* Does raising rent require signing a new lease?

* Their utilities (gas and electric) are currently included. I want to transfer that responsibility to them as well. Does that require a new lease?

Thanks!

[Charles Carillo]

@Dan Rosen

First, I would send the tenants a letter stating the new lease terms you are proposing. If they do want to stay, you create the lease with the new rent amount, etc. If this is a multifamily building; are the utilities you want them to start paying for separate from the other tenants? If not, you need to separate these or setup RUBS. If they are separate, you put in the letter and the lease that gas and electricity will be the responsibility of the tenant. 

One thing to note is that when you are determining the rent increase, keep in mind that the tenant is also paying for utilities now (a rent increase on its own).