Quote from @Ruben S.:
Hello guys! And happy Thanks Giving!
I purchased my 1st rental property in 09/2022 in CA with tenants with a lease expiring in Dec, 31 2022.
I would like to get your answers in the following questions.
1. Can I increase the required security deposit on my inherent tenants? They have agreed with the new rent amount and I told them I would need to increase the security deposit to the same amount of the new rent.
2. When do we sign the new lease? 30 days before the last one expires or on the last day the old one is expiring which is my case would be Dec 31st?
3. If we're signing a new lease, do I have to send them like a letter reflecting the new rates for rent and security deposit, have them sign it, send it back to me and then send the new lease for signature? We have already talked over the phone and txt messages about the new rent and security deposit so I'm not sure if is there still need to send the first letter reflecting the increase on both rent and deposit. Or since They already agreed, I should just send the lease new for them to sign it.
also, what do you guys think about sending new lease electronically via app? I'm using RentRedi app and I noticed there is way to send new lease to tenants over the app. My rental property is a couple hrs aways from where I live, so time and travel are not easy for me.
Happy Thanksgiving Ruben,
To help with your questions:
1) Yes you can. If you are signing them into a new lease, it is the equivalent of brining them on as a new tenant. You may want to check you landlord/tenant laws to be 100% sure. But over here in CT, this is not a problem.
2) I typically give tenants notice of a rent increase 60 days in advance and request that they accept and sign the new lease 45 days before the current lease ends. Waiting until the last second could result in tenants not vacating in a timely manner and you losing money. Also, giving the notice super late may throw the tenant for a loop as they may feel their back is against the wall with limited time to make a decision. In your case, get them to sign the new lease ASAP.
3) Another one where you would have to check your local laws. But, what I do is send them a summary notice at first explaining all that will be changing such as a new lease, the amount and the security deposit. I have them sign that document first to accept these changes and shortly after follow up with all of the new documents for them to sign. You could just hit them with the new lease at once, but I find it easier to send a summary letter first so they can easily digest the changes coming.
4) Some landlords will say always deliver your leases in person and some say electronic is fine. I personally send everything electronically. Of course I make tenants initial every page of every document. However, I do see the benefit in taking time to meet with your tenants and review the lease with them. I have had several situations where tenants claimed "I did not know that was part of the lease" and I am sure it was simply because they did not read the electronic version I sent them.
Good luck on your journey!
