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  1. #1
    Join Date
    Oct 2006

    Michigan rent increase issue

    What is the name of your state? Michigan

    At the beginning of the month, there were notices posted in all of our buildings that effective December 1st there was going to be a rent increase. Rent on a one bedroom apartment is going to be increased from $360 to $489 a month. I am renting a one bedroom currently.

    The new manager took over sometime between spring and fall of this year and has been improving the buildings over the last few months. I renewed my lease in July and when I did we agreed upon $360 a month. My manager/landlord has known about these upcoming improvements since she took over as she mentioned it once when I was paying my rent. So if these increases are due to the improvements, shouldn't I have been notified of this increase sooner and shouldn't it have been mentioned when I signed the new lease agreement?

    Furthermore, is it even legal for them to increase my rent when my lease doesn't expire for another 9 months?

    This is what it says in my lease agreement under rent.

    Rent: During the initial term of this Lease, the market or contract rent shall be $6,156.00 payable in monthly installments of $513 in advance on the first of each month beginning with the commencement date of the Lease. Resident shall be responsible for paying full market or contract rent unless reduced hereunder pursuant to paragraph 8 of this lease or the HUD addendum. The basic and market rental rates are subject to change by the Management upon approval of the change by the Administration, in accordance with it's regulations, and Section 14, and MCL 544.663 (1)(i), (ii) and (iii). When submitting a request for such a change to the Administration, the Management shall provide notice of the request to the Resident, such notice may be made by mailing and posting pursuant to Administration regulations. Any change in basic and market monthly rental approved by the Administration shall be effective as of the date stated in a notification of the approved change to the Resident, which date shall be at least thirty (30) days after the date of the notice to the Resident; provided, however, that no increase in tenant contribution to rent will take place due to prepayment of the RHS/RD loan during the term of the lease, and in the event of borrower prepayment of the RHS/RD loan, all leases will be handled in accordance with VIII A of Exhibit B of RHS/RD instructions 1930-C and all procedures specified in 1965.90 of Subpart B of Part 1965 of Chapter XVIII of Title 7. (see section 41 below on prepayment)

    The rest of the rent paragraph covers utilities and occupancy in terms of legal residence (i.e. occupant is the tenant who signed the lease)

    Tenants were only given notice of the increase and when it would take effect. No notice was given that an increase had been requested.
    The rent that was agreed upon when I signed my lease was $360 a month (just under 30% of my income).

    This is Section 8 which was referred in the above paragraph(eligibility).

    Eligibility: A. Resident shall supply all requisite information in order for Management to make a redetermination of eligibility pursuant to Administration guidelines and standards, including, but not limited to, verification of income from employment and other sources, applicant's financial capability to meet living and rental expenses, credit reports, prior landlord references, family composition and other personal data. Failure to timely provide the above described information shall render Resident ineligible and subject to the payment of market or contract rent until Premises leased is vacated by Resident. Resident and Management agree that should Resident no longer meet the eligibility requirements of the project during the term of the lease agreement, Resident will be required to vacate unit unless an exception is authorized by the Administration.
    B. Resident shall meet eligibility requirement pursuant to Administration standards, including but not limited to:
    1) Be a very low, low or moderate income person as defined by the Administration.
    2) Comply with the number of authorized occupants per unit size.

    (I live on my own in a one bedroom apartment, and eligibility was made at lease renewal.)

    This is part 41 as mentioned above in regards to prepayment.

    Prepayment Advisement: As a condition of the Government's approval of a request to accept early payment on notes owed, the tenant household is protected, to the extent herein disclosed, against involuntary displacement (except for good cause)and against having the tenant household contribution level (rent) materially increased until[insert a date 20 years from the date of the last RHS/RD loan or servicing action making the loan subject to prepayment restrictions, or insert "the tenant household decides to move" depending on the restrictive-use provision accepted by the owner (see § 1965.215 (e)(5) of Subpart E Part 1965)]. Specifically, the tenant household contribution level(rent) must be consistent with those necessary to maintain the project for low-and-moderate-income tenants. Those tenants whose tenant household contribution (rent) did not exceed 30 percent of their monthly adjusted income at the time of prepayment was accepted, may have their tenant household contribution level (rent) raised to the lesser of 30 percent of their monthly adjusted income or 10 percent of their gross monthly income per year. Those tenant households whose tenant contribution level (rent) exceeds 30 percent of their monthly adjusted income at the time the prepayment was accepted, may have their tenant household contribution (rent) raised to the lesser of the latest U.S. Consumer Price index or 10 percent per year.

    As I stated before, the agreed upon rent was set at just under 30% of my income.

    Last edited by elcucuy; 10-22-2006 at 07:10 AM. Reason: adding information.
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