A problem with tenant

amother

Cyan

Wed, Jun 24 2015, 7:10 am

The only reason there is a Lakewood community to move to is because of the yeshiva community. Who do you think started the stores, school, mikva, and infrastructure (as lousy as it is) that you moved to. Why did you move to a town that you are so quick to put down?

You may want to do research on rent increases. it doesn't sound like your tenant is being so wrong about paying the rent increase.
Also, has their lease expired. I'm not sure that you can raise the rent unless their original lease has expired.

From New Jersey Department of Community Affairs Division of Codes and Standards

Refusal to Pay Rent Increase
If a tenant refuses to pay the rent increase and remains at the rental unit after the old lease expires (establishing new tenancy), the landlord may file a legal action in Superior Court to have the tenant evicted for failure to pay the rent increase. The landlord is not required to give the tenant notice before filing an eviction action for non-payment of the rent increase.
Unconscionable Rent Increase
If the tenant refuses to pay the rent because the tenant believes the rent increase is unconscionable or unreasonable, the tenant may withhold a portion of the rent. The tenant may withhold the difference between the old rent rate and the new increased rate. However, the landlord may take the tenant to court based on non-payment of rent increase, if this happens, the tenant may argue to the judge that the increase is unconscionable. The landlord has the burden of proving to the court that the rent increase is fair and not unconscionable. Note: If the tenant chooses not to pay the rent increase he should continue to pay the regular rent and be prepared to pay the full amount of the rent increase if the court rules in the landlord’s favor.

I'm also a landlord, not in NJ, and an eviction itself is expensive - court fees, etc. you will probably have to fix up the house: paint, refinish floors, professionally clean carpet. The cost of this can way exceed the difference you will make and you may have no tenant for 1 - 2 months. This can total $4000 including all the losses of evicting a tenant and missed rent.

Also check out: http://njsteps.org/Forms/Lakew.....l.pdf
Lakewood NJ rent increase rules
Permitted. Rental Increases.
Landlords who~supply tenants with heat are hereinafter permitted to raise rents on rental units governed by this section once a year at a flat rate increase of six and one half (6.5%) percent over the previous base rent permitted by this section or any prior ordinance except as otherwise hereinafter forth. Landlords who do not supply tenants with heat are hereinafter permitted to raise rents on rental units governed by this section once a year at a flat rate increase of five (5%) percent over the previous base rent permitted by this section or any prior ordinance except as otherwise hereinafter set forth. This increase shall e effective at the expiration of a lease or termination of a rental period provided at least one (1) year has passed since the last increase.

This may not apply to single family home. If the tax increased you can raise it more. You have to give the rent increase in writing. If you want to raise it more you have to submit to rental board. You can probably call the township office for more information. but before becoming the bad guy and trying to evict you may want to first see if you are even legally allowed to do so.
If you are also renting an illegal basement in the same home you want to make sure that will not become a problem during the legal process.

amother

Aubergine

Wed, Jun 24 2015, 7:34 am

I did not read all the replies, so perhaps this was already said.
OP is a new buyer/landlord.
When a house is partially (or fully) paid off I can understand the kind landlord not raising the rent to market value. But OP just purchased the house AT market value and therefore to cover her costs, needs to charge market value rent.
A house on my block in Brooklyn was recently sold for 3x the amount I paid about 15 years ago. There is a tenant living there for approx. 30 years and they were told if they stay on as tenants, their rent will almost be doubled - since they are paying so much below market value rent.
If they move out, the new tenant will be paying 30% more than some others in the same apartment on this block.
It is never easy for a tenant to be increased a lot at a time. But here the tenant made his own decision how much he is willing to pay, and that is wrong, and stealing.
OP, for the future, buying a house with existing tenants brings more trouble than it's worth. Good Luck.

SYA

Wed, Jun 24 2015, 7:59 am

As quoted above, there are laws on the amount a landlord may increase the rent. Depending on location between 3-10% per year. Raising more than that is illegal and the tenant can fight it.

The only time it can be raised 20% is if you are scraping the floors, painting, and really fixing up the place or putting in new appliances. When I moved into an apt I received a form from the landlord with the city landlord / tenant laws which states cleary about rent increases. I had to sign I understood before signing the lease. Buying a property does not entitle one to raise the rent to market value. You should have looked into that before you bought. The tenant is covered under the lease with the seller and that lease is "grandfathered" in meaning automatically transferred to you. You cannot increase except yearly on date of lease signing, unless you split the legal annual amount in 2 to do it twice over 6 months. So if legal amount is 5% annually, you can raise 3% at annual date and 3% six months later.

Now if this is an illegal rental and not being reported as income, the landlord can get themselves into more trouble then it's worth. The irs / state may ask to see tax returns to see income from rental. Was the income reported and taxes paid on it? Housing officials can come check if it's "livable" and issue fines for violations you may not be aware of, like the fire codes, mold, heat and hot water...

naturalmom5

Wed, Jun 24 2015, 9:07 am

amother wrote:

ONCE AGAIN

LAKEWOOD IS NOT BROOKLYN

MAYBE THATS NOT REAL WORLD

VERY FEW THINGS IN LAKEWOOD ARE

Barbara

Wed, Jun 24 2015, 9:40 am

SYA wrote:

I think that the problem is that the tenant in this case does not have a lease, and doesn't want to sign a lease because he intends to purchase a house. So, if I'm reading this correctly, OP's husband told him fine, if you're moving within 3 months, just pay the old rent until you move out. The tenant said he hasn't been able to buy a house, and expects to stay as a month to month tenant at under-market rent. Tenant has been there "much longer" than the 3 months -- 5 months? 6 months? -- at the old rent.

Month to month tenancies are usually at a much HIGHER rate than lease tenancies, because of the risk to landlord who may have someone move out with no notice.

Barbara

Wed, Jun 24 2015, 11:09 am

naturalmom5 wrote:

Barbara what you're saying is logically plausible but unless the tenant was told this in writing before moving in it will be very hard to enforce

Told what? That he's not allowed to hold over at the end of the lease? That he's not allowed to pay what he wants as rent, rather than what his landlord demands?

Although lots of leases do have holdover provisions. Who knows? OP isn't sharing that information.

What is clear to me, from a practical perspective, is that OP would be best off coming to some agreement, in writing, rather than fighting. Tenant has 3 months at slightly increased rent. If he's not out by then, it turns into a 1-year lease at higher rent. Something like that.

amother

Jade

Wed, Jun 24 2015, 11:39 am

Lakewood landlord here.
We have 3 rentals for about 15 years. Over the years we have had quite a number of different tenants. Some were more pleasant and easier to deal with then others, but I found that was totally based on personality, not frumkiet level or the sect they were connected to.
We have had differences of opinions with our tenants many, many, many times. Most, if not all, were monetary based and related to rent increases. What we did every single time is to go to a Rav. That is really what most people here do. Rabbi Forschiemer has special hours that you can sign up for an appointment every day. There is also a Rabbi Marder in yeshiva that has hours every night to deal with these issue. We have sometimes "won" and sometimes "lost" but we always felt understood and validated and both sides did come to an agreement of what should be done.
We are not particularly yeshivish btw. We do not run to ask a Rav for every little thing that comes up, but in this area we did find it the right way to go. Especially since it is the most accepted way around town. The scenario you brought up sounds like a perfect example of something Rabbi Marder deals with. Tell him that you do not want to budge on the rent increase amount and the tenant is not willing to listen, pay or leave. He will work with you on that point and not focus on IF you should be raising the rent. I really think your tenant will abide by whatever the Rav says and will move tomorrow if he is told. That has been our experience.
In the mean, ease up a bit. For your own benefit. From the tone of your posts it sounds like may be communicating too harshly for your own good. It is so much easier when you have a good relationship with your tenants and I have found that is largely in my hands. Keep things professional, not too friendly, but be cordial and nice. It will go a long way.

naturalmom5

Wed, Jun 24 2015, 12:43 pm

imalady wrote:

Hi, Lakewooder here,

Yeshivish, btw and although I understand the dig, really theres all kind everywhere.

okay as far as what people do...

In Lakewood, by the law, you can not raise the rent more than 5% in any given year. Check with a lawyer. That means you may only raise his rent to 1575. This is enforceable in Bais din and the non jewish court. So as far as that goes, you are raising the rent more than is acceptable by law and general practice.

Not that you'll be able to. Because the increase is more
than whats allowed by law, you will not be able to evict. In fact he can claim that you have not complied with the law and he is within his right to continue paying old rent until this is settled. A Bais din will not give you right on this one since Dinah dmalchusa applies and all that.

Consult a Rav because you may have issues with ona'a and/or chamas if you force him to pay 1650. Those sins are as much a part of vidui as gazalnu.

I am assuming that you do not have his abusive language recorded. In which case, do 2 things. Send him a registered letter apprising him of the new rent that is allowed within the law. Add that you expect rent to be paid on the 1st of the month or whatever old lease said. Also write there, that due to unpleasant conversations in the past all conversations will be recorded and considered admissible in a court of law. whether that's true or not, the tenant will at least moderate his tone and behavior. Record conversations in any case.

but the other poster is right: Yes, you may have issues down the road with schools or shidduchim if you chuck a family that is moving anyway. Yes that will be true even if you are right.

and it is also true that it is not worth it financially to bother if he is leaving within 6 months. 1 month of rent not earned is 10 months of not getting your rent increase. You do need him to be cooperative unless that's a risk you are willing to take.

Thank you
I wanted to say this but got too emotional
And OP , one always had to do chesed with another yeed
That's why we are here
If there are financial complications you go to a Rov
If you are forced to become vicious like your posts imply it might be the wrong investment for you
Perhaps you should take your money and your atitude elsewhere

Fox

Wed, Jun 24 2015, 3:09 pm

Barbara wrote:

What is clear to me, from a practical perspective, is that OP would be best off coming to some agreement, in writing, rather than fighting. Tenant has 3 months at slightly increased rent. If he's not out by then, it turns into a 1-year lease at higher rent. Something like that.

I haven't been a landlord in almost 30 years; I've never lived in NJ; and I'm not an attorney. But what Barbara is saying makes the most sense from a legal perspective as well as a financial perspective.

Getting a new tenant costs a landlord money. At the very least, it usually means having a professional cleaning crew in; painting; and repairing all the things you didn't realize the previous tenant broke. So it's quite likely that the apartment will sit empty for a month just to get everything readied for the next tenant. And that assumes that you have this ideal tenant all lined up, which is far from certain.

Basically, we're talking about a difference of $150 a month between what the tenant wants to pay and what the OP wants to receive. I'm not sure that $1800 ($150 per month over the course of a year-long lease) is enough to compensate the OP for the costs of getting this tenant out so that she can rent the apartment to someone new.

As Barbara said, get this tenant on a lease asap, and if you want them gone for whatever reason, stipulate in the lease that you will not be renewing it at the end of the year. That will enable you to line up a new tenant, make necessary improvements, and most important -- avoid having the apartment sit empty for a month.