Here's how it works.

By not making a choice 5 months ago and waiting 4 months to make one you are deemed to have constructively declined any choice, leaving your landlord entitled to change the offered terms as he saw fit.

Should you stay beyond the lease expiration on a month to month basis your rent will be $200 more than it is now.

Putting the money in his account does not signify his acceptance and he can easily serve you with the appropriate pay or quit notice. Even if he keeps the money, a partial payment is still a default and could subject you to eviction.

What you think the owner's motives or consequences are is irrelevant. When I was a landlord I had tenants tell me that kind of stuff and my response was always "If you don't like my terms, move."

Up to you if you want to move within the next two weeks or pay the increased rent for another month to give you more time to find an appropriate place.