Landlord wants us to lie to keep homestead exemption (Austin: lease, mortgage) - Texas (TX) - City-Data Forum

11YearsinAustin · 04-04-2012, 03:02 PM

Our landlord has emailed and asked us to lie and say that he is still living here in order to keep his homestead exemption. Apparently the county found out he is not living here anymore.

What can we do? We desperately want out of this lease, as the landlord has raised rent mid-lease. We know this isn't legal, but there was a clause in our lease called "Rent Increases" and it said, "Landlord must give 90 days notice for any rent increases." We just thought that meant that 90 days before the lease ends, we would get notice of increases for the next lease term. We agreed to the increase via email, because we thought we had no choice. The increase isn't supposed to start until May. We have now consulted an attorney to review the lease to determine if the increase is legal. With that plus being asked to help commit fraud, we're uncomfortable and wanting to move. I don't think our landlord can afford to keep the house anymore.

Any suggestions? I think the implication was that if the landlord loses the homestead exemption, our rent will get raised again. The rent on the house is already outrageous for what it is if the rent increase is considered. (The reason he gave for the rent increase was that his mortgage had gone up due to tax increases in November.)

Thanks in advance for any advice. We are also seeking legal counsel.

11YearsinAustin

supernaut112 · 04-04-2012, 03:04 PM

If he's lying to keep his homestead exemption, he's probably lying about other things. Rent is taxable income.

I wouldn't get involved with anything shady, because it could all come right back on you. Definitely talk to an attorney or the Austin Tenant's Council. I suggest the attorney, as it's very difficult to get in touch with anyone at ATC.

Trainwreck20 · 04-04-2012, 03:45 PM

The HE is insignificant during a single year....what might be significant is if his taxable value has been below the appraised value due to the 10% limit that the HE imposes on tax increases.

As for raising your rent w/o the option to exit the contract...i doubt that is legal, even if that is what it says; otherwise, they could just double your rent with 90 days notice and then claim you are 'breaking' the contract if you decide to move.

I personally would either tell him to shove it, which would probably not end well, so I would recommend it. If you are the conniving sort, tell him, sure, you will say he lives there, as long as he gives you $1,000 up front

.

11YearsinAustin · 04-04-2012, 03:50 PM

He said losing the HE would increase his payments by $200-$250 per month. He said his mortgage went up in November by $140 a month, and that's the amount he is passing on to us in the rent increase.

So you're saying we should or should NOT tell him to shove it?

passionatearts · 04-04-2012, 03:57 PM

Quote:

Originally Posted by 11YearsinAustin

Our landlord has emailed and asked us to lie and say that he is still living here in order to keep his homestead exemption. Apparently the county found out he is not living here anymore.

Lying about a homestead exemption is fraud, and he's asking you to help him commit a crime. Don't do it!

Quote:

Originally Posted by 11YearsinAustin

What can we do? We desperately want out of this lease, as the landlord has raised rent mid-lease. We know this isn't legal, but there was a clause in our lease called "Rent Increases" and it said, "Landlord must give 90 days notice for any rent increases." We just thought that meant that 90 days before the lease ends, we would get notice of increases for the next lease term. We agreed to the increase via email, because we thought we had no choice. The increase isn't supposed to start until May. We have now consulted an attorney to review the lease to determine if the increase is legal. With that plus being asked to help commit fraud, we're uncomfortable and wanting to move. I don't think our landlord can afford to keep the house anymore.

I've never heard of a lease that allows the landlord to raise the rent before the lease term has ended. Sounds like he pulled a fast one on you. I hope you're ready to take this guy to court because you may have to do so to recover any money you may have lost.

OpenD · 04-04-2012, 04:07 PM

Quote:

Originally Posted by passionatearts

Lying about a homestead exemption is fraud, and he's asking you to help him commit a crime. Don't do it!

Agreed!

Quote:

Originally Posted by passionatearts

I've never heard of a lease that allows the landlord to raise the rent before the lease term has ended. Sounds like he pulled a fast one on you. I hope you're ready to take this guy to court because you may have to do so to recover any money you may have lost.

Agreed!

11YearsinAustin · 04-04-2012, 04:19 PM

The rent increase is set to start next month, so we haven't lost anything so far. Lawyer came back with a response and the statute that prevents rent increases and said that his 90-day clause won't hold up in court as valid for a rent increase. She said that he could possibly take us to court because the wording is so ambiguous, but the court would certainly side with us.

We are not touching fraud with a 10 ft pole!

11YiA

11YearsinAustin · 04-04-2012, 04:27 PM

Do any of the landlords actions nullify the lease? I just want out so badly. We haven't had one month without some issue and the landlord over here. House came furnished. Landlord took all of the stuff out in February. Landlord took 2 months to move his stuff out. Landlord's mom came over to get some stuff from the back yard. Just constant reminders that this is not our house. I don't feel at home here, and now that we have decided not to renew the lease in Sept. we know he is going to try to sell. I'd rather PLAN my next move, not have it happen from under me. We do have children, and while we can't buy right now, it is important for us to provide some stability at least one year at a time!

11YearsinAustin

CptnRn · 04-04-2012, 04:41 PM

Quote:

Originally Posted by 11YearsinAustin

Do any of the landlords actions nullify the lease? I just want out so badly. We haven't had one month without some issue and the landlord over here. House came furnished. Landlord took all of the stuff out in February. Landlord took 2 months to move his stuff out. Landlord's mom came over to get some stuff from the back yard. Just constant reminders that this is not our house. I don't feel at home here, and now that we have decided not to renew the lease in Sept. we know he is going to try to sell. I'd rather PLAN my next move, not have it happen from under me. We do have children, and while we can't buy right now, it is important for us to provide some stability at least one year at a time!

11YearsinAustin

I don't think any of his actions would give you grounds to vacate the lease. Unless your lease says the house was supposed to remain furnished. That would be grounds if he then removed everything. You should hold your ground and plan on moving out in August so there is no surprise move for you to worry about. He can't sell it out from under you when you have a signed lease. He may try to keep your deposit so make sure you clean the house good and take photos of the condition of everything before you move out, so you will have proof of the condition you left it in. There is some good advice here on protecting your rights, things you need to know about moving out and how to sue in small claims court. Austin Tenants’ Council/Tenant-Landlord Fact Sheets The Austin Tenant's Council also has a call line to offer advice.

Don't be in a hurry to press him about returning your security deposit. If he keeps it for more then 30 days without providing you with an itemized list of damages he is withholding for, he forfeits any right to the deposit. If you have to sue in small claims for the return of the deposit and court costs, the court could award you additional damages depending on how egregious the landlords actions were.

CptnRn · 04-04-2012, 04:48 PM

If you really want out earlier... if you have written proof that he has encouraged you to commit fraud, an illegal act, you could advise him that this has made you very uncomfortable, in addition to the other things you are unhappy with, so you want his written agreement to terminate the lease with no penalty. No threats, just that you want out.