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Raising the rent on my tenant

bradis2cool4u 226 221 January 12, 2016 at 07:56 AM
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I bought a house at an auction in August of 2015. It is a house with 2.5 acres and has a trailer on the opposite side of the property. The trailer was in a lease when I bought the place and the agreement was I honor the lease until Feb 2016. I want to raise the rent by a bit. Does anyone have any experience with this? I am looking for a template or something to use to go by. I'm not quite ready to have the guy leave yet but that will come sometime in the future after I sell my other house.

The lease grants him the trailer and use of a huge 2 bay garage with a 3rd bay in the back for which he uses to work on his son's race car. He's only paying $700 which is low given how much space the garage provides.

Any help would be appreciated.

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#2
Assuming you are giving the tenant a new lease with the rent increase, it is a simple matter of taking the old lease, changing the dates and amount and any other terms you feel need changing and sending it to him.

Also, although one always wants to get the best rate possible, if the tenant has been a good tenant for an extended period of time (pays on time all the time, cause no issues), then it is usually worth trying to work something out with them with respect to a fair rent imo. It is better to take slightly less in rent if you know there will be no headaches or issues and also no gap in occupancy. My 2 cents.
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#3
Yeah before doing anything talk to him to see how he reacts to the change you want. Perhaps you can get a negotiation going and make everyone happy. If he just gets the increase note, he probably will be upset.
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#4
Quote from YanksIn2009 View Post :
Assuming you are giving the tenant a new lease with the rent increase, it is a simple matter of taking the old lease, changing the dates and amount and any other terms you feel need changing and sending it to him.

Also, although one always wants to get the best rate possible, if the tenant has been a good tenant for an extended period of time (pays on time all the time, cause no issues), then it is usually worth trying to work something out with them with respect to a fair rent imo. It is better to take slightly less in rent if you know there will be no headaches or issues and also no gap in occupancy. My 2 cents.
Thank you for taking interest in my post. I appreciate the time you gave it.

The plan is to raise his rent by $50-$75 and allow him to continue to rent on a month to month basis. I like having him there, but I want the flexibility to remove the trailer when my other house is sold.

I'm looking for some official looking form I could use to send to him.
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#5
Quote from YanksIn2009 View Post :
Assuming you are giving the tenant a new lease with the rent increase, it is a simple matter of taking the old lease, changing the dates and amount and any other terms you feel need changing and sending it to him.

Also, although one always wants to get the best rate possible, if the tenant has been a good tenant for an extended period of time (pays on time all the time, cause no issues), then it is usually worth trying to work something out with them with respect to a fair rent imo. It is better to take slightly less in rent if you know there will be no headaches or issues and also no gap in occupancy. My 2 cents.
I totally agree as he said as much as you want to milk the investment raising the rent can push a way the tenant especially if he is a good tenant. Good cash flow is hard to come across and having a guy that gives you no problems, headaches, and pays is better than raising the rent and having the risk of him leaving.

However if you still want to raise the rent all you need is a form and just put the new total same rules etc, just a new due payment.
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#6
Quote from bradis2cool4u View Post :
Thank you for taking interest in my post. I appreciate the time you gave it.

The plan is to raise his rent by $50-$75 and allow him to continue to rent on a month to month basis. I like having him there, but I want the flexibility to remove the trailer when my other house is sold.

I'm looking for some official looking form I could use to send to him.

If you want to effectively cease the renting of the unit\trailer at a certain point in the future but do not know when yet and want to continue month to month until then (which is what I think you are saying), then you really have two options imo.

1. Let him stay month to month without a lease at the current rate and just give him advance notice when the time comes. Depending on what state\city you are in, there are rules about how much notice you have to give. Irrespective of that, if he has been good a tenant then you should give as much advance notice as possible so he has time to make arrangements to move without being pressured. By not raising the rent, you do not have to go through the trouble of a new lease and it leaves you the most flexibility when it comes to terminating the rental aspects of the property.

2. Raise the rent and inform him that current terms will continue month to month. The problem with this is that they may decide to ask for a lease and lock in a term with the rent increase. Then you have to make a decision on how long a term you will want to give them. Usually, no one will sign a lease for less than a year. Of course you could refuse to give a lease and raise the rent anyway, but if they ask for a lease and you refuse it is a sure fire way to start arguments.

As to legal documents, rental agreements are online in a lot of places. Easiest thing to do is just moidify the existing doc, but if you are looking for new ones, I would search for rental agreements in the city and state where the property is. They are pretty standard fair usually.
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#7
Quote from YanksIn2009 View Post :
If you want to effectively cease the renting of the unit\trailer at a certain point in the future but do not know when yet and want to continue month to month until then (which is what I think you are saying),
You are right with the above assumption. If I raise the rent and continue month to month do I need have new paperwork for the month to month? He has been a good tenant but he's paying substantially lower then the going rate for what he has.
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#8
Thank you all for the responses, I really appreciate you all taking time to address this. Some of your comments didn't how before I posted the last thing so please don't think I ignored you. You have been very helpful.
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#9
Quote from bradis2cool4u View Post :
You are right with the above assumption. If I raise the rent and continue month to month do I need have new paperwork for the month to month? He has been a good tenant but he's paying substantially lower then the going rate for what he has.

Assuming the other terms of the existing lease are satisfactory, then you can just send him a letter stating that the rent is increasing to X and the lease and all other terms continue month to month. His paying of the increased rent would be a de-facto acceptance of the terms of the letter. Like I said though, that is fine for your situation, but he may decide to ask for a lease which would mean you have to then make a decision as to whether to give it to him or not and for what term.
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#10
Quote from YanksIn2009 View Post :
Assuming the other terms of the existing lease are satisfactory, then you can just send him a letter stating that the rent is increasing to X and the lease and all other terms continue month to month. His paying of the increased rent would be a de-facto acceptance of the terms of the letter. Like I said though, that is fine for your situation, but he may decide to ask for a lease which would mean you have to then make a decision as to whether to give it to him or not and for what term.
Gotcha, thanks!
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#11
Quote from bradis2cool4u View Post :
Thank you for taking interest in my post. I appreciate the time you gave it.

The plan is to raise his rent by $50-$75 and allow him to continue to rent on a month to month basis. I like having him there, but I want the flexibility to remove the trailer when my other house is sold.

I'm looking for some official looking form I could use to send to him.
Something I read was raise the rent enough that they don't feel it but do it repeatedly. Think the number was like 5%. He might feel the $75 and make decision to move on. & agree with others that if you aren't having to shake him down for rent. Leave him alone and keep collecting.

Maybe i'm reading your post too literally but sounds like you are going to mail him something instead of talking to him face to face? Might be better to just bring him paperwork?
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#12
Quote from tennis4789 View Post :
Something I read was raise the rent enough that they don't feel it but do it repeatedly. Think the number was like 5%. He might feel the $75 and make decision to move on. & agree with others that if you aren't having to shake him down for rent. Leave him alone and keep collecting.

Maybe i'm reading your post too literally but sounds like you are going to mail him something instead of talking to him face to face? Might be better to just bring him paperwork?
No, I'm going to walk it over. He lives on my property.
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#13
You never mentioned where this property is. Depending on the area, there are landlord/tenant laws that must be followed. California [ca.gov] for example.
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#14
Quote from nufan292 View Post :
You never mentioned where this property is. Depending on the area, there are landlord/tenant laws that must be followed. California [ca.gov] for example.
as we know California is ass backwards.
What's California on move out notices?
I don't have to accept a move out notice if it's given to me after the first
I don't give them an increase after the first for the same reason.
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#15
I use forms from the Rental Housing Alliance (Oregon). They cost about $1.50 and conform to all of the state laws & regs. I'm sure you can find something like that in your state.
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