Notice to Raise Rent on Renewal, or Not Renew?

Notice to Raise Rent on Renewal, or Not Renew? by Matsui (NYC, NY ) on July 24, 2012 @09:09

Hi everyone. I have a tenant under market-rate lease that expires end of this month (July 2012). Tenant is in contract to buy a house so initially asked me for a 1-2 month extension until their closing, etc. I was happy to accommodate that request but now the tenant has asked for a 6 month extension through Jan 2013 instead, so they can do some major renovations.

The problem with accommodating that request is that my apartment will be vacant on the market in the dead of winter, which makes finding a renter much more difficult. Furthermore, I have a wonderful prospective tenant who is ready to move in October 1, 2012 for a 2 year lease.

Again, this is a market-rate lease in NYC not subject to rent control or rent stabilization. So I want to give my current tenant two options:

a) Tenant can stay until last week in September 2012 at current rent, on a month to month basis with pro-rated rent for the partial month of September. That gives tenant 60 days notice to move out and find temporary shelter until he closes on his house and completes renovation. Does this meet the notice requirements to end the tenancy??

or

b) Tenant can stay for a 6 month extension. Since I will lose my new prospective tenant for Oct 1 occupancy and have to deal with finding a new renter in the middle of winter, I would agree to grant the 6 month extension but with a 15% increase in the monthly rent. I have 2 questions here - is there a cap on the percentage increase in rent for market rate units? My rent is currently at least 15% below market so the increase would put it in line. Second, how much notice is required before I can start charging the increased rent? Can I charge the 15% increase starting in August if I give notice at this late date, or must I wait until September or later before the 15% increase can take effect?

I have reviewed the lease, and there are no provisions that cover timeframes for such rent increase notices.

Thank you for any assistance.

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Re: Notice to Raise Rent on Renewal, or Not Renew? by John-PA-LL on July 24, 2012 @09:21	[ Reply ]

Why make it complicated? You have a qualified t at market rate for a 2 year lease. Current lease is up, it goes MTM after that then you have to deal with notices to quit. You may just want to extend the current lease until Aug 31 and not renew.

Re: Notice to Raise Rent on Renewal, or Not Renew?

Re: Notice to Raise Rent on Renewal, or Not Renew? by Franklin (TN) on July 24, 2012 @09:25	[ Reply ]

So what in the world are your tenants doing right now? Their lease is up in a week... I take it they have signed a 2 month lease or a month to month renewal or something stating they want the place in August and September. I also imagine in that lease they signed a rate for their rent was stipulated. I'd need to know what they've agreed to in writing with you before giving any further advice.

Re: Notice to Raise Rent on Renewal, or Not Renew?

Re: Notice to Raise Rent on Renewal, or Not Renew? by Jake on July 24, 2012 @09:43	[ Reply ]

In reality, you do not know when this tenant is moving. It could be tomorrow or a year from now. And, the closing may never be completed. Your tenant needs to get off the fence. Either he is moving at the end of the lease of he will sign for another year. You should not allow your tenant to take control and tell you what is going to happen or not happen. Raising the rent on the tenant for the next few months will not help you after you lose your prospect and are stuck with a winter vacancy.

Re: Notice to Raise Rent on Renewal, or Not Renew?