Quote from @Kar Sun:
Quote from @Bill B.:
Exactly. Then situation #2 occurs. The tenant finds out you are still being generous with your rates. And either they pay it because they love their standard of living and hate moving. Or realize they can no longer afford their same standard of living. I assume you wouldn’t write your tenant a check every month for $400. That’s basically what you’d doing when charging under market. PLUS, if the “saviors” ever come in and pass rent control you’re screwed because you were nice.
GL.
He was actually pretty mean when texting me stating that my property is not worth it and it is a money grab.
He was also saying that my mortgage did not change and that he was checking with the neighbors.
I really do not like that he is doing all this snooping.
That does not look good.
Also he stated if he accepts it is under a duress.
I really do not want to have a relationship with a tenant who sees the contract as a "duress".
I am not sure why he is doing it, perhaps he has been traveling a lot and is stressed.
I believe that I would be in the same boat as you with the feeling that I wouldn't even want to continue the relationship with him. I'm not saying that I would automatically move forward with a nonrenewal but I would definitely put that on the table for him to think about. Like you said, you really do not want to have a relationship with a tenant who sees the contract as a "duress". So in those very words I believe that I would put that in his court.
Dear Tenant,
I would like to start by saying that as a business owner I appreciated our mutually beneficial business relationship. However, also as a business owner I must run my business as just that. A business. We have been reluctant over the past 3 years to raise rents at the same pace that the market has increasing by and it has created this delima. I realize that you feel this is an unreasonable increase but it is a necessity in order for this to continue being what it is. A business. One that requires operating with margins. I hope that after you research our local market you will see the value in our property but should you still feel that you are "under duress" with renewing the lease at our adjusted fair market rent amount then perhaps our property is no longer a good fit for you.
On (DATE) we will require a new signed lease agreement reflecting the adjusted amount. We respectfully await your decision.
Property Owner
After that it's all his decision and whatever you do don't take his responses personal. I know that's hard. Probably one of the hardest parts of managing your properties. But necessary. If he continually responds with ugliness then just respond with that same line each time: "I wouldn't want you to be unhappy with our property so if you feel that way then perhaps it is no longer a good fit for you."
