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I need some advice here one of my tenants has had a two year lease renting my home and his renewal is coming up. Based on the contract he has the first option to renew the lease for another year, but it doesn't mention that his lease will stay the same and it is a little vague. He believes by renewing that everything will stay the same even though we have to create a new contract for a new lease for another year. He wasn't cooperative and told me he will take legal action if I raise his rent. What would you do in this situation? Not renew their lease and hope they don't take legal action or raise their rent and send him a new contract? Any advice would be appreciated. Has anybody been in this situation before?
Just boot the tenant. He sounds like a whiny "female dog." Every house I've rented had a landlord who'd raise the rent a little bit after each lease renewal. When it became what I felt was too high, I moved out.
I'm not a lawyer, though, so take my advice lightly.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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It sounds like you learned to include language in the lease about the rent on the renewal. Does the old lease also give you an option to renew his lease, or just the tenant? Ideally it would state that there option is subject to your approval since you might prefer a new tenant, or to sell rather than renew his.
Threatening to sue is common, whether the tenant has a case is another matter. What I would do is take the lease to a real estate lawyer and ask.
There are important words, for example "extend" vs "renew" that come into play.
Well, I certainly wouldn't say that the tenant is whining or is a "female dog"... He has a right to be upset about increasing fees. This wouldn't be much of a country if people were just expected to roll over and take whatever cost increases were handed them without protest. If it were, our government would be in hog heaven.
Having said that though, I think a rent increase within a reasonable percentage is valid and not unusual at the start of a new lease. If the increase is 20 or 30%, then the guy may have a case based on unreasonable expectations, but somewhere around a 3-5% - maybe even 10% - increase is completely understandable. Like Hemlock said, it all depends on the wording of the contract.
My thought would be: Why would you want to keep a tenant that threatens to sue you?
You are not obligated to renew the lease. It's an OPTION to renew. Our lease has the same clause built into it. You, as the LL, so not have to give the tenant the option of renewing the lease.
Reading your post..."renew" literally might sound like he is essentially signing the same lease...I agree with the earlier poster...Talk to an attorney..
And, I'd also choose not to give this person the opportunity to remain your tenant..I'd want anyone that threatened me not to benefit from my allowing them access to my home....Sounds like a jerk.
A couple of links of interest: Learning the Legal Language of the Lease Agreement LEASE
Well, I certainly wouldn't say that the tenant is whining or is a "female dog"... He has a right to be upset about increasing fees. This wouldn't be much of a country if people were just expected to roll over and take whatever cost increases were handed them without protest. If it were, our government would be in hog heaven.
Having said that though, I think a rent increase within a reasonable percentage is valid and not unusual at the start of a new lease. If the increase is 20 or 30%, then the guy may have a case based on unreasonable expectations, but somewhere around a 3-5% - maybe even 10% - increase is completely understandable. Like Hemlock said, it all depends on the wording of the contract.
The whiny tenant can move if he doesn't like the rate hike. That's what I have always done. It's nothing personal.
OP, go and see a lawyer and show him your lease and get his advice about what it says. If the lawyer is of the opinion that the rent can be raised, have the lawyer write a letter to your tenant to that effect.
The second that a tenant threatens to sue me, he is out of there. If that were my contract, I would be able to raise the rent and I would raise it so high the tenant's underpants would be up around his ears. Where if he had behaved in a decent manner, the rent might not have gone up at all. I don't like to raise the rent on my good trenants, unless my expenses have taken a huge jump, but I am not keeping a tenant who has threatened to sue me.
I need some advice here one of my tenants has had a two year lease renting my home and his renewal is coming up. Based on the contract he has the first option to renew the lease for another year, but it doesn't mention that his lease will stay the same and it is a little vague. He believes by renewing that everything will stay the same even though we have to create a new contract for a new lease for another year. He wasn't cooperative and told me he will take legal action if I raise his rent. What would you do in this situation? Not renew their lease and hope they don't take legal action or raise their rent and send him a new contract? Any advice would be appreciated. Has anybody been in this situation before?
If he was a good tenant and you are raising the rent just after two years because you think you get just a little more out of him, I think you are kind of a prick of a landlord.. Of course, if your costs have increased or there are meaningful reasons rather than just trying to sucker a little more of out of him, then I could understand. However, I always raise an eyebrow to a landlord. BTW, Depending on the rent increase and if the current tenant was responsible, paid rent on time and kept up your unit, you may actually end up screwing yourself by getting a horrible tenant who trashes your place and nullifies your rent increase. You never know who you will get. Although, if he is suing you, obviously you are no longer friends.. Advice for the future.
No offense, My last landlord I think will be keeping my deposit because he said I didn't clean behind the stove and their were cobwebs he had to clean. I spent 10 hours cleaning his house and paid my rent early every month and he even praised me as a good tenant, but said that because of all the cleaning and few other things, he would have to charge me.. Haven't gotten my deposit back yet, but I could tell by his tone of voice on my message that he has decided to steal my deposit. . I am sick of greedy , cheapskate, conniving landlords. So, I apologize if I sympathize with your tenant.
Is your tenant in the right?? Probably not.. If the lease doesn't have a clause stating rents cannot be increased then you are in the clear. The rent can only not be raised for the duration of the lease, an option to renew a lease with no guarantee of rent increase means you can increase the rent. And, in order for the lease to be renewed , I believe both of you would have to sign it and all the renewal means is that you are giving him another option to stay and sign another lease without additional deposits or application fees, etc. I could be wrong..
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