When a lease is set to expire or has expired, the LANDLORD will often seek to raise the rent.    Sometimes, the LANDLORD will even seek to raise the rent during the lease.    

DOES THE LANDLORD HAVE A RIGHT TO RAISE THE RENT DURING THE LEASE TERM?         

Usually no.   A limited exception applies to tax credit communities, but in almost all cases regarding conventional properties, the monthly rent amount established in the lease remains the rent amount during the entire tenancy.    However, if the written lease provides for a specific rent increase during a period of the lease term, that rent increase will be enforceable.         

WHEN A WRITTEN LEASE IS SET TO EXPIRE, CAN THE LANDLORD NOTIFY THE TENANT OF A RENT INCREASE TO TAKE EFFECT AFTER THE LEASE EXPIRES?  

Yes.   If the lease has wording to raise the rent in a subsequent month-to-month tenancy, that mechanism will be enforceable if the LANDLORD fully complies with the requirements of the lease provision.

IS THERE A SPECIFIC LIMIT TO HOW MUCH THE RENT CAN BE INCREASED?    

No. Except for some counties and cities. However, the LANDLORD and tenant must agree to the desired rent increase.                       

WHAT ACTION CAN THE LANDLORD TAKE IF THE TENANT IS UNWILLING TO PAY HIGHER RENT?    

If the tenant is unwilling to agree to pay higher rent when the lease is set to expire or has expired, the LANDLORD should nonrenew the lease or month to month.  

This should all be handled in the same timeframe as required if it is a month to month tenancy or if there is a lease.

WHAT HAPPENS IF THE LANDLORD MISSES THE WINDOW TO NON-RENEW THE TENANCY AS OF THE LEASE EXPIRATION DATE, OR IF THE TENANCY IS ALREADY MONTH-TO-MONTH?   

If it is too late to non-renew as of the lease expiration date, the lease will typically become a month-to-month tenancy, and the LANDLORD will be able to non-renew the subsequent month-to-month tenancy. 

 If the tenant is unwilling to agree to pay a higher rental rate, the rent amount for that period will be at the same rent rate as was being charged.

IF ALL TENANTS ON THE EXISTING LEASE ARE WILLING TO PAY A HIGHER MONTH-TO-MONTH RATE UPON THE CURRENT LEASE EXPIRING, HOW SHOULD THIS BE ADDRESSED?    

All tenants on the existing lease will sign a month-to-month addendum showing the higher rent.     Written correspondence from the tenants acknowledging and agreeing to the higher rent amount would normally suffice, and even just the act of the tenant(s) paying the higher rent amount would probably be sufficient to establish the higher rental rate.    However, the month-to-month addendum will better clarify that all other terms and conditions of the original lease will remain in effect.   

REVIEW:

1. You MUST look at the lease to see how much notice is required to nonrenew or give at least 30 days notice (SINCE JULY 1, 2023 LAW CHANGE)  prior to payment period ending date with month to month.

 

2. You MUST tell the tenant the new rent amount BEFORE the window you have to nonrenew the lease or BEFORE the 30 days notice (SINCE JULY 1, 2023 LAW CHANGE)  prior to the payment period ending date with month to month.

 

3. If the Tenant fails to AGREE to the higher amount, you MUST nonrenew the tenant. If you improperly nonrenew, the tenant only has to pay the original rent amount until such time as you properly nonrenew. If you nonrenew and the tenant fails to vacate, we can evict.              

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