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  1. #1
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    Dec 2016
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    Default If You Don't Renew a Lease Early Can Your Landlord Treat it as Giving Notice

    My question involves landlord-tenant law in the State of: California.

    Hi, I could do with some advise on how to handle my lease renewal situation. First of all, my city does not have rent control, which means that my (corporate) landlord can charge whatever it wants as rent. Second of all, yes, I know I can always move but I have a complicated personal situation that restricts my ability to move out from the city where I currently live (at least for the next year).

    My lease expires at the end of February. Landlord sent me a lease renewal notice in the middle of December with rent proposed that is $300 above what the company was advertising property for on Craig's List, etc. When I asked why they would expect me to pay more than market rates, they claimed that the current rate is for immediate to late January move-in, while my lease is a March to February lease, and that they "predicted" that the proposed rent would be market rate in late February ! I objected, asking why they want me to sign the lease renewal NOW and why I cannot wait (until end of January) to see what the market rate is for leases renewing at the end of February, to which they responded that if I did not sign the renewal by Jan 5, then it would taken as me giving them 60 days' notice ! My current lease only stipulates a 30 day notice, but I suspect that they are doing this because they expect rents to be lower than the rate they are "predicting" as market rate in late February (aka the rent they want me to renew for).

    Is there a way to fight this coercion aka the demand for a 60 day notice, when my current lease agreement only stipulates a 30 day notice ? I want to see what the market rate is at the end of January before I sign anything. If market rate is indeed lower, can they still force me to renew my lease at a higher rate than market ? I feel that they are discriminating against me (do not want to go into details here for privacy reasons) and this sort of confirms my suspicion. I am also concerned that they might re-draw the lease to charge a rent that would be absolutely unaffordable for me to force me out if I continued to question their demand for either my immediate renewal or giving them notice.

    Kindly advise. Thank you !

  2. #2
    Join Date
    Oct 2006
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    16,474

    Default Re: Can a Landlord Decline Lease Renewal if You Don't Accept a Rent Increase

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    My question involves landlord-tenant law in the State of: California.

    Hi, I could do with some advise on how to handle my lease renewal situation. First of all, my city does not have rent control, which means that my (corporate) landlord can charge whatever it wants as rent. Second of all, yes, I know I can always move but I have a complicated personal situation that restricts my ability to move out from the city where I currently live (at least for the next year).

    My lease expires at the end of February. Landlord sent me a lease renewal notice in the middle of December with rent proposed that is $300 above what the company was advertising property for on Craig's List, etc. When I asked why they would expect me to pay more than market rates, they claimed that the current rate is for immediate to late January move-in, while my lease is a March to February lease, and that they "predicted" that the proposed rent would be market rate in late February ! I objected, asking why they want me to sign the lease renewal NOW and why I cannot wait (until end of January) to see what the market rate is for leases renewing at the end of February, to which they responded that if I did not sign the renewal by Jan 5, then it would taken as me giving them 60 days' notice ! My current lease only stipulates a 30 day notice, but I suspect that they are doing this because they expect rents to be lower than the rate they are "predicting" as market rate in late February (aka the rent they want me to renew for).

    Is there a way to fight this coercion aka the demand for a 60 day notice, when my current lease agreement only stipulates a 30 day notice ? I want to see what the market rate is at the end of January before I sign anything. If market rate is indeed lower, can they still force me to renew my lease at a higher rate than market ? I feel that they are discriminating against me (do not want to go into details here for privacy reasons) and this sort of confirms my suspicion. I am also concerned that they might re-draw the lease to charge a rent that would be absolutely unaffordable for me to force me out if I continued to question their demand for either my immediate renewal or giving them notice.

    Kindly advise. Thank you !
    They cannot force you to give 60 days notice if your lease calls for 30 days notice. They can choose to give you 60 days notice themselves if they no longer want you as a tenant.

    You can advise them that as per your lease you will be deciding whether or not to renew at the end of January. You however should be prepared to find somewhere else to live if they decide to be stupid about the whole thing and give you notice.

    I think that they are already being pretty stupid if they are trying to pressure you into renewing at a rate higher than what they are advertising.

  3. #3
    Join Date
    Mar 2013
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    Default Re: Can a Landlord Decline Lease Renewal if You Don't Accept a Rent Increase

    Section 1946.1(b) of the Civil Code requires a landlord to give a tenant 60 days notice of a proposed termination of a tenancy if you have lived there for a year or more. Your lease at the current rent terminates in a little over 60 days at which time I am guessing you will have been there for one year, meeting the notification requirements of that section.

    It would appear that your landlord is complying with 1946.1(b) by giving you 60 days notice of termination of tenancy at the end of February, unless you sign a new lease at the increased rate starting March 1st. It's pretty straightforward.

    With respect different rates, (January - March) - no one wants to move during the holidays, so vacant properties tend to stay empty during November, December and January. Landlords will drop rent significantly below market during those months to fill vacancies and avoid taking a huge loss. When February and March roll around, people are ready to start moving again and rents for vacant units go back up to market rate. As a landlord I'm in that boat right now. I own a beach rental that normally goes for $5,000 per month. My tenant recently moved and it's going to be vacant for December and January. To avoid taking too much of a loss I've dropped the rent to $4,000 per month for anyone who signs a lease and fills that vacancy now, but come February 1, the rent will jump back to $5,000 if it's still vacant.

    You will not be filling a current vacancy. Instead, you will be renewing a lease during a period when landlords are not desperate for tenants and there is no reason to drop rents below market. You are free to decline the rent raise, move, and your landlord will find another tenant who will pay the market rate.

  4. #4
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    Default Re: Can a Landlord Decline Lease Renewal if You Don't Accept a Rent Increase

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    Section 1946.1(b) of the Civil Code requires a landlord to give a tenant 60 days notice of a proposed termination of a tenancy if you have lived there for a year or more. Your lease at the current rent terminates in a little over 60 days at which time I am guessing you will have been there for one year, meeting the notification requirements of that section.

    It would appear that your landlord is complying with 1946.1(b) by giving you 60 days notice of termination of tenancy at the end of February, unless you sign a new lease at the increased rate starting March 1st. It's pretty straightforward.

    With respect different rates, (January - March) - no one wants to move during the holidays, so vacant properties tend to stay empty during November, December and January. Landlords will drop rent significantly below market during those months to fill vacancies and avoid taking a huge loss. When February and March roll around, people are ready to start moving again and rents for vacant units go back up to market rate. As a landlord I'm in that boat right now. I own a beach rental that normally goes for $5,000 per month. My tenant recently moved and it's going to be vacant for December and January. To avoid taking too much of a loss I've dropped the rent to $4,000 per month for anyone who signs a lease and fills that vacancy now, but come February 1, the rent will jump back to $5,000 if it's still vacant.

    You will not be filling a current vacancy. Instead, you will be renewing a lease during a period when landlords are not desperate for tenants and there is no reason to drop rents below market. You are free to decline the rent raise, move, and your landlord will find another tenant who will pay the market rate.
    I have to disagree with you. The landlord in this case specifically did NOT give the tenant 60 days notice. The landlord specifically stated that if the tenant did not renew now, with the 300.00 increase, that the tenant would be considered to be giving 60 days notice.

    While I can understand a tenant getting a discount during a slow period, that does not mean that a 300.00 rent increase is "market" either. Quite clearly this tenant did not originally rent during the slow period, since the tenants lease expires at the end of February. Therefore a 300.00 rent increase is questionable and the OP should not have to commit to that sooner than the lease requires.

  5. #5
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    Default Re: Can a Landlord Decline Lease Renewal if You Don't Accept a Rent Increase

    Quote Quoting llworking
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    I have to disagree with you. The landlord in this case specifically did NOT give the tenant 60 days notice. The landlord specifically stated that if the tenant did not renew now, with the 300.00 increase, that the tenant would be considered to be giving 60 days notice.
    First, we do not have a copy of the letter from the landlord to OP. I suspect that between OP's paraphrasing and what was actually in writing, much has been lost in translation.

    Second, I have to apologize as I probably could have explained things better.

    OP is on an annual lease which terminates at the end of one year. OP's duty to vacate is implied by the existence of a lease. OP's right to occupy terminates on the day their lease expires. Unless arrangements to the contrary have been agreed upon ahead of time, OP's dwelling should be vacant the day the lease expires, without further notification by either party.

    OP can continue to occupy the premises under either of two conditions:

    1. Their landlord can accept rent after expiration of the lease and thereby convert OP to a monthly tenant

    2. OP and the landlord can sign a new lease.

    Landlords often send a courtesy notice regarding lease renewals 60 before the old lease expires, particularly if there is to be a change in the terms and conditions of the lease (such as rent). I believe it is done this way to avoid a conflict with 1946.1(b) of the Civil Code. If they wait until the lease expires and things roll over to a month to month tenancy, the landlord will be forced to then give notification of any changes and wait 60 days, losing two months of increases. From a business point of view, it's better to do this two months prior to the lease expiring and implement increases at the start of the new lease.

    In this case, the landlord has sent a courtesy notice offering a new lease at new terms. By doing so, the landlord has made it clear they will not allow the premises to roll over to a month to month occupancy at the end of the original lease. OP if free to decline the new lease, but in choosing that course of action they are expected to honor their first lease and vacate the premises promptly at its termination.

    Quote Quoting llworking
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    While I can understand a tenant getting a discount during a slow period, that does not mean that a 300.00 rent increase is "market" either. Quite clearly this tenant did not originally rent during the slow period, since the tenants lease expires at the end of February. Therefore a 300.00 rent increase is questionable and the OP should not have to commit to that sooner than the lease requires.
    That one's hard to respond to without knowing the nature of OP's property, neighborhood and comps. What the market rate is depends on where you live and what you are renting. One of my rental properties is in a zip code where the cheapest house for rent is $2,500 per month (12 blocks away) and the most expensive is $32,000 per month (25 blocks away). You just don't know which way is up until you have enough information to be able to personally assess the local market.

  6. #6
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    Default Re: Can a Landlord Decline Lease Renewal if You Don't Accept a Rent Increase

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    Section 1946.1(b) of the Civil Code requires a landlord to give a tenant 60 days notice of a proposed termination of a tenancy if you have lived there for a year or more. .
    two problems with this: that section applies to month to month tenancies and second, op will not have lived there in excess of one year when notice would be given.

    I find no law requiring either party to provide any notice of intent to not continue the tenancy. When the lease ends, so does the right to possess. If the lease includes a time period to act lest some action be deemed if force (either notice to not renew lest lease renews or notice to renew lest tenancy ends), then that is an enforceable term of the contract.

  7. #7
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    Default Re: Can a Landlord Decline Lease Renewal if You Don't Accept a Rent Increase

    I don't think we are in disagreement here. Instead, we are just saying the same thing a different way.

    If the landlord does nothing and allows the tenant top stay, the expired lease rolls over to a 30 day month to month tenancy. If that occurs, it appears the tenant will have been there for a year. At that time 1946.1 will come into play, delaying any rent raise for another 60 days. Landlord is heading that off by sending a courtesy notice now, advising the tenant can only stay beyond the lease expiration if a new lease is signed. I think we're pretty much on the same page here.

  8. #8
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    Default Re: Can a Landlord Decline Lease Renewal if You Don't Accept a Rent Increase

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    I don't think we are in disagreement here. Instead, we are just saying the same thing a different way.

    If the landlord does nothing and allows the tenant top stay, the expired lease rolls over to a 30 day month to month tenancy. If that occurs, it appears the tenant will have been there for a year. At that time 1946.1 will come into play, delaying any rent raise for another 60 days. Landlord is heading that off by sending a courtesy notice now, advising the tenant can only stay beyond the lease expiration if a new lease is signed. I think we're pretty much on the same page here.
    it converts only if the lease says it does. Otherwise the tenancy has ended and the op is a holdover tenant subject to a UD suit.

    It appears op has already recieved a notice of rent increase so even if it requires 60 days, it appears that has been met, it the law applies and the op is allowed to continue the tenancy as a month to month tenant.

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