tenant cant afford rent increase and cant afford to move out

[pharcyder]

What is the name of your state (only U.S. law)? Ca

I have a tenant who pays $1300 for a unit that is worth $1500 per month. I would like to raise the rent to $1400 per month. I have told the tenant that they should look into moving out. After I followed up with the tenant, they say they cant afford to move because they have bad credit and they cant save up for a deposit. The tenant has been with me for 8 years. The rent is on time every month.

Would you keep the tenant?

If not, how would you recommend handling the situation?

Thanks much,
Stephen

 

[Zigner]

Yours is not a legal question. Good luck.

 

[Gail in Georgia]

As has been pointed out, this is not a legal question but...

There are a HELL of a lot of worst things than a tenant who has stuck around for 8 years, paying rent faithfully for every month.

In 8 years of renting you've made almost 125K worth of rent on this tenant. We landlords should be so lucky! Keep them!

Gail

 

[LdiJ]

What is the name of your state (only U.S. law)? Ca

I have a tenant who pays $1300 for a unit that is worth $1500 per month. I would like to raise the rent to $1400 per month. I have told the tenant that they should look into moving out. After I followed up with the tenant, they say they cant afford to move because they have bad credit and they cant save up for a deposit. The tenant has been with me for 8 years. The rent is on time every month.

Would you keep the tenant?

If not, how would you recommend handling the situation?

Thanks much,
Stephen

I will at least give you something to think about.....

You have a steady tenant who has been with you for 8 years and who has paid on time every month. If that tenant leaves you could potentially earn another 2400.00 a year from your rental unit. You could also have tenants who don't pay you on time, leave after a year causing you a cost in preparing the unit for new renters and possibly being without rent for a month or two in the meantime. If it takes two months to ready the unit and get a new renter in, that is 2600.00 out of your pocket at the current rental rate.

 

[FarmerJ]

Stephen Ldij was rather Kind Ok you have a tenant who has been with you paying all along Sure new tenant can pay more, but say you had that new tenant , then they didnt bother to stay on say at month 18 and up and moved and left just enough mess behind and caused you ohh say 1500 in lost rents and cleaning and re paint , then next one is happy to pay but they are secretely FrankenWolfcountDraculaPartyHardyQueenKing of the coast and they up and leave you with 10k in damages Dont say no ? you have a tenant who may not be at market rent but ILL bet they would stay another 10 years easy keeping your cost low. wiegh it out.

 

[pharcyder]

Thanks guys. This is exactly why I use these forums. Solid advice. Thank you.

 

[Searchertwin]

What is the name of your state (only U.S. law)? Ca

I have a tenant who pays $1300 for a unit that is worth $1500 per month. I would like to raise the rent to $1400 per month. I have told the tenant that they should look into moving out. After I followed up with the tenant, they say they cant afford to move because they have bad credit and they cant save up for a deposit. The tenant has been with me for 8 years. The rent is on time every month.

Would you keep the tenant?

If not, how would you recommend handling the situation?

Thanks much,
Stephen

Agree with others posters.
I have the same situation. I have one renter that's been with me close to 6 years. I could easily raise the rent, but I keep it low. Why? They pay rent, leave me alone and they take care of minor things.
You might suggest to them since you want to raise the rent, but if they consider to handle minor problems on their own at their expense, you won't. Like a leaky faucet, snaking the sewer if it gets clogged, or a/c needs to be cleaned, things on that order.
Put it in writing.