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Just moved to Northern California by way of Pennsylvania to help out 90 year old Grandmother.
She has been renting out a studio apartment over the garage since February to a neighbor who was having issues with his roommates. This was only suppose to be temporary, as he was moving back to Indiana. The studio was previously kept among family members.
Currently the tenant is only paying $350 a month with utilities, water, trash/recycle, garage, storage and cable provided. He'd also use her phone to call his relatives long distance once a week.
He would do things like wash her dishes, take out the trash and get her paper while she was living alone.
She has no idea how much things cost these days, and is suffering with having to pay all the bills.
Just wondering what would be the best way to go about increasing his rent, and what's a reasonable increase.
Just moved to Northern California by way of Pennsylvania to help out 90 year old Grandmother.
She has been renting out a studio apartment over the garage since February to a neighbor who was having issues with his roommates. This was only suppose to be temporary, as he was moving back to Indiana. The studio was previously kept among family members.
Currently the tenant is only paying $350 a month with utilities, water, trash/recycle, garage, storage and cable provided. He'd also use her phone to call his relatives long distance once a week.
He would do things like wash her dishes, take out the trash and get her paper while she was living alone.
She has no idea how much things cost these days, and is suffering with having to pay all the bills.
Just wondering what would be the best way to go about increasing his rent, and what's a reasonable increase.
Thank you
I would find out the going rent in the area AND what is included in that price. Unless you're in a rent controlled area you can raise rent to whatever the going rate is. I sound assume somewhere around double the current rate if you're including ALL THE
Over 10% and if tenant has been there for over 12 months 60 day notice
If under 10% raise 30 day notice.
The "extras" alone probably run close to the amount he is paying if not at or over.
1) Is it even a legal apartment?
2) Is this a verbal, month to month, agreement?
3) Do you have any authority to make such decisions for your relative?
4)Did you look up your states guidelines on rent increases for month to month tenants?
If you answer no to any of these then you should start there.
I would find out the going rent in the area AND what is included in that price. Unless you're in a rent controlled area you can raise rent to whatever the going rate is. I sound assume somewhere around double the current rate if you're including ALL THE
Over 10% and if tenant has been there for over 12 months 60 day notice
If under 10% raise 30 day notice.
The "extras" alone probably run close to the amount he is paying if not at or over.
Rent for a place like that alone is about $1200 in the area. He has really been getting a deal all these months.
1) Is it even a legal apartment?
2) Is this a verbal, month to month, agreement?
3) Do you have any authority to make such decisions for your relative?
4)Did you look up your states guidelines on rent increases for month to month tenants?
If you answer no to any of these then you should start there.
As far as I know you can rent to a relative in the state without it being an issue. Being this is not a relative, and this was only suppose to be a temporary 3 month agreement that changes things.
I didn't know it was this bad financially coming here, so she will be assigning me legal power of attorney soon.
Rent for a place like that alone is about $1200 in the area. He has really been getting a deal all these months.
Thank you, that's what I have as well.
AZ brings up some good points. I assumed the rental was on the up and up lease written etc
Check and see if there is a written lease. I assumed there was but with a 90 yo it's most likely a I trust you sonny.
You may need a written POA to make decisions for Grandma but since you're gonna be her caretaker there should be some sort of decision making capability on your end to handle her interests in her dealings and some paperwork showing you have the power to do so. If you don't have it get it.
The illegal apartment as AZ pointed out (you can check with the city to see if there was a permit pulled or house was built with the room. If it was pre planned and built like that or there was a permit pulled and completed you're good. If it's illegal you may have issues renting it unless you bring it to code.
You wont know the legality until you check. If it's illegal you're better off not renting it than running into legal issues and tenants calling the city. If it's $1200 a month I would look into making it a legal rental. Granted you need to figure out if it's worth it.
1) Is it even a legal apartment?
2) Is this a verbal, month to month, agreement?
3) Do you have any authority to make such decisions for your relative?
4)Did you look up your states guidelines on rent increases for month to month tenants?
If you answer no to any of these then you should start there.
OP, I agree that you should find out the answers to these questions before you decide what to do.
And I'd add another - has the guy been a good tenant? If he has, you might want to keep the rent lower than the going rate in order to keep him. In any case, if he's been a good tenant - on time with the rent and otherwise responsible - you might want to have a friendly discussion with him before you decide how much to raise the rent.
Maybe your relative just wants company. My gf before she died. Rented her basement to a another friend of mine. She cut the rent back till it just covered the extra expense of having him live there. She just wanted a person around.
How much help is he giving her? A 90 year old woman could use a little help like doing the dishes and taking out the garbage. I don't think it is unreasonable for him to get what amounts to free rent if he is really providing care for his landlady. (his rent is probably just covering the utilities he is using)
How much would it cost to have a caretaker come in a couple of times a week and provide some help?
Note... even if it was illegal... the tenant may have very strong rights in rent controlled jurisdictions...
What do you want to happen?
If you want the person to move... it may be as simple as asking.
If you want more rent... you need to proceed very carefully and lots of legal minefields out there... again, Rent Control.
Remember, cash for keys is alive and well in the SF Bay Area...
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