So what did this landlord do wrong?
Let’s start a list.
- Did not use a pet agreement
- Did not just say, “I’m not renewing your lease.”
- Told everyone who is behind the trust
- Spoke to the press
- Got a bit greedy perhaps?
- Created a victim
- Got entwined in a lawsuit
What else?
How could they have handled things a little better? I’ll share some thoughts later on. Meanwhile let me know what you think with your comments.
Even if the going rent in the area is $2,850, to hit a long-term tenant with a $1,100 (61%+) increase is indeed excessive. The landlords should have made the increase over several years or at least given the tenant plenty of notice on the increase, such as 60 or 90 days, so she could find a more affordable place to live.
George Lambert
Author, What You Must Know BEFORE Becoming a Greedy Landlord. How to build a portfolio of investment properties for an income that lasts a lifetime.
Agreed. You just cannot slap a tenant with such a large rent increase, even if the market justifies it. It will cause you trouble, as these folks found out, and it just does not feel like the right thing to do. The article sort of makes it sound like they were not quite on top of their game. Surly smaller rent increases over the past several years were justified and could have likely been done without such a fuss.