Results 1 to 5 of 5
  1. #1
    Join Date
    May 2013
    Location
    Los Angeles
    Posts
    41

    Default Can a Landlord Increase Rent if a Renewal Option is Silent on Rent Increases

    My question involves landlord-tenant law in the State of: California
    I am renting my place to someone for a year and the lease agreement has a clause that allows the tenant to unilaterally renew the lease for 6 months "under separate agreement". No mention of the rate. My lawyer said that this allows for me to increase the rent. But after reading my Nolo law book I'm confused. It says "To be legal, option clauses must clearly set forth the terms of the renewed tenancy, including the new term, the rent (which can be different from the rent for the first term if the option clause clearly says so) and so forth. Most clauses do this by simply referring to the initial lease terms. An option clause that leaves any significant term, SUCH AS RENT or length of term, to further negotiation, or words to that effect, is of no effect and is not legally binding". What do they mean by that? That the tenant actually has no right to renew or that I have no right to raise the rent?

  2. #2
    Join Date
    Mar 2013
    Posts
    1,262

    Default Re: Can a Landlord Increase Rent if a Renewal Option is Silent on Rent Increases

    Quote Quoting MrMister
    View Post
    Most clauses do this by simply referring to the initial lease terms. An option clause that leaves any significant term, SUCH AS RENT or length of term, to further negotiation, or words to that effect, is of no effect and is not legally binding". What do they mean by that? That the tenant actually has no right to renew or that I have no right to raise the rent?
    I think you may be interpreting things wrong.

    At their end, most leases do not renew for another equal period. Instead, they convert to a month to month tenancy. Usually the lease reads something like this:

    Hold over: Any holding over at the expiration of this lease shall create a month to month tenancy at a monthly rent of $***, payable each month in advance. All other terms and conditions herein shall remain in full force and effect.

    While the lease may renew as a month to month tenancy at the same terms and conditions as the original lease, the terms of a month to month rental are only good for a month. Upon the giving of 30 or 60 days notice (depending on the circumstances and nature of the change) many terms and conditions of a month to month rental can be negotiated, changed or unilaterally imposed by a landlord. The tenant's option is to accept, move, or negotiate a new, long term lease that satisfies the needs of both tenant and landlord.

    A lot will depend on the specific language of your lease and how it addresses Hold Over.

  3. #3
    Join Date
    May 2013
    Location
    Los Angeles
    Posts
    41

    Default Re: Can a Landlord Increase Rent if a Renewal Option is Silent on Rent Increases

    There is no mention of holdover and no mention of creating a month to month. It only says that tenant is unilaterally allowed to renew under under separate agreement. After than only by mutual agreement.

  4. #4
    Join Date
    Mar 2013
    Posts
    1,262

    Default Re: Can a Landlord Increase Rent if a Renewal Option is Silent on Rent Increases

    It's hard to respond to your paraphrasing. Your need to copy and paste the entire lease after redacting any identifying information.

  5. #5
    Join Date
    May 2013
    Location
    Los Angeles
    Posts
    41

    Default Re: Can a Landlord Increase Rent if a Renewal Option is Silent on Rent Increases

    Landlord gives Tenant the unilateral right to renew the lease under separate agreement for a 6 month term at the end of initial 12-month lease. Thereafter, the lease may only be renewed by mutual agreement.

    Spoke to a lawyer. As it turns out, this clause is regarding a new lease -- not a renewal of the same lease. Either way I have every right to raise rent, even above and beyond 10%.

    1. Sponsored Links
       

Similar Threads

  1. Rent and Utilities: Must You Give 60 Days Notice For a Rent Increase on a Lease Renewal
    By MrMister in forum Landlord-Tenant Law
    Replies: 1
    Last Post: 05-28-2016, 05:21 PM
  2. Extending a Lease: Late Notice of a Rent Increase for an Automatic Lease Renewal
    By trevor463 in forum Landlord-Tenant Law
    Replies: 7
    Last Post: 02-28-2016, 12:21 PM
  3. Rent and Utilities: Excessive Rent Increases and New York City Rent Control Laws
    By Brookyln in forum Landlord-Tenant Law
    Replies: 3
    Last Post: 05-26-2013, 09:46 AM
  4. Rental Agreements: Landlord Raised Rent After I Signed Renewal Stating No Increase
    By greenday7777 in forum Landlord-Tenant Law
    Replies: 1
    Last Post: 09-30-2012, 08:49 PM
  5. Rental Agreements: Another Rent Increase After Accepting Lease Renewal
    By JOELNEWYORK in forum Landlord-Tenant Law
    Replies: 3
    Last Post: 11-25-2007, 10:35 AM
 
 
Sponsored Links

Legal Help, Information and Resources