Raising Rent In Lakewood

[aygart]

I would agree over a 3 year timespan but 75% after 20 years is more than reasonable. And just 5% after 10 years is pretty ridiculous.

I agree that 5% after 10 years is ridiculous and there should be some level of accumulation allowed, but 75% in one shot is not reasonable. That was the landlord's choice to not raise the rent for 20 years.

[yuneeq]

5% retroactive up to 4 years.

Some interpreted it as 5% just once. The fact it’s even open for interpretation is a problem.

It's 5% a year for 10 years would be about 50%

eg starting at $1000 and increasing 5% a year for 10 years, would end up at $1550.

It would be more than 50% as it would be compounded, but in the other thread some said max is 4 years retroactive, and some said it’s just 5% raise one time.

[avromie7]

Some interpreted it as 5% just once. The fact it’s even open for interpretation is a problem.

It would be more than 50% as it would be compounded, but in the other thread some said max is 4 years retroactive, and some said it’s just 5% raise one time.

I didn't see anyone say only one 5% increase ever, but we did debate if terms of the contract allowed it to be retroactive.

[Euclid]

Some interpreted it as 5% just once. The fact it’s even open for interpretation is a problem.

It would be more than 50% as it would be compounded, but in the other thread some said max is 4 years retroactive, and some said it’s just 5% raise one time.

$1000+50% is $1500
(1000 + 1000*.5)

Compounding $1000*.05 annually over 10 years is $1551

8. Rent Increases. The parties accept upon themselves that after each Term the Landlord may raise the rent by a
maximum of [ ] ___________ dollars or [ ] _____ percent, per year.~~~

I'm assuming each month-to-month (auto)renewal is considered a new Term, so then it can increase 5% each year as per the original contract.

[yuneeq]

I didn't see anyone say only one 5% increase ever, but we did debate if terms of the contract allowed it to be retroactive.

I’m referring to you saying that it would only allow one raise and not retroactive. That’s ridiculous because most people don’t necessarily want to raise every year but rather wait and raise over time.

[avromie7]

I’m referring to you saying that it would only allow one raise and not retroactive. That’s ridiculous because most people don’t necessarily want to raise every year but rather wait and raise over time.

Which one is it? Do they want to raise over time or not?

I was just reading the contract, I don't know what the intention is and what BD would rule regarding retroactive increases.

[Euclid]

In my personal experience, more important than the details of the contract - I make sure to vet a potential tenant (basement of my house) to ensure that they're reasonable, normal people. I rented to my current tenant $200/month less than someone else offered, because the other people didn't seem like they would be good tenants. (I think I was right, especially after the rude text I got from him when I informed him that I wouldn't be renting it to him.)

[avromie7]

In my personal experience, more important than the details of the contract - I make sure to vet a potential tenant (basement of my house) to ensure that they're reasonable, normal people. I rented to my current tenant $200/month less than someone else offered, because the other people didn't seem like they would be good tenants. (I think I was right, especially after the rude text I got from him when I informed him that I wouldn't be renting it to him.)

Funny story, my landlord wanted to call my previous landlord as a reference before we signed, but I was hesitant to ruffle feathers with my then current landlord. When he gave me his email address I realized I know his brother very well and even fixed the landlord computer previously (for free). The landlords wife was the one who showed us the apartment, so I never got a chance to put it all together. Needless to say he felt very comfortable not calling the then current landlord.

[aygart]

I’m referring to you saying that it would only allow one raise and not retroactive. That’s ridiculous because most people don’t necessarily want to raise every year but rather wait and raise over time.

I think a max on how far back to go is also reasonable.

[YitzyS]

Nice story about a relatively unknown baal tzedakah from Boro Park, Rabbi Boruch Greisman, who was niftar a few years ago.

[yuneeq]

$1000+50% is $1500
(1000 + 1000*.5)

Compounding $1000*.05 annually over 10 years is $1551
I'm assuming each month-to-month (auto)renewal is considered a new Term, so then it can increase 5% each year as per the original contract.

10 years of increases would result in $1,628.89. You skipped a year.

[yuneeq]

Which one is it? Do they want to raise over time or not?

I was just reading the contract, I don't know what the intention is and what BD would rule regarding retroactive increases.

I’m talking about what many people do in reality, yet as you agree, the contract is vague and open for interpretation. That’s an issue.

[Euclid]

10 years of increases would result in $1,628.89. You skipped a year.

Off by one errors. Can never avoid them

[YitzyS]

Off by one errors. Can never avoid them

+2

[yuneeq]

Off by one errors. Can never avoid them

Your tenant is grateful for it

[Moshe123]

In my personal experience, more important than the details of the contract - I make sure to vet a potential tenant (basement of my house) to ensure that they're reasonable, normal people. I rented to my current tenant $200/month less than someone else offered, because the other people didn't seem like they would be good tenants. (I think I was right, especially after the rude text I got from him when I informed him that I wouldn't be renting it to him.)

You remind me of a story.

I was looking for a tenant several years ago and we showed the apartment to a couple. I indicated at the time that I have no issue. I did my due diligence later and got very bad info from the management company of the previous landlord. I told them that I'm not going to go through with it. I hadn't sent a contract yet.

What followed was insane. I got calls from the couple, and then his in-laws. Screaming at me and literally cursing me for a very long time with all sorts of curses. I let them talk and talk. I offered that if they had money expenses for something they bought for the apartment after I indicated that I was willing then I can make them whole. I took it in stride and bh none of the curses came to be. Hashem should help.

[yerushabubby]

In my personal experience, more important than the details of the contract - I make sure to vet a potential tenant (basement of my house) to ensure that they're reasonable, normal people. I rented to my current tenant $200/month less than someone else offered, because the other people didn't seem like they would be good tenants. (I think I was right, especially after the rude text I got from him when I informed him that I wouldn't be renting it to him.)

True, but you can't anticipate everything.

We had a tenant that came with great references, his boss was willing to guarantee the rent etc.  He lived there for four years. 

In that time, a couple of his kids went off the derech, and made trouble for all the neighbors (I don't know specifics, but the police were involved , leaving the kids with police records.)

His boss went bankrupt, and laid him off, also cancelling the guarantee on the rent.  He had huge legal bills because of his kids, and the neighbors were pressuring us to get him out of the building.

If we would have had the type of lease common in Lakewood, we would have had no recourse until he stopped paying rent.  As it was, the last few checks bounced (after he was given notice) and they were never covered.

The tenant himself was a fine upstanding Yid, but circumstances beyond his control turned him into a nightmare tenant.

[ari3]

You remind me of a story.

I was looking for a tenant several years ago and we showed the apartment to a couple. I indicated at the time that I have no issue. I did my due diligence later and got very bad info from the management company of the previous landlord. I told them that I'm not going to go through with it. I hadn't sent a contract yet.

What followed was insane. I got calls from the couple, and then his in-laws. Screaming at me and literally cursing me for a very long time with all sorts of curses. I let them talk and talk. I offered that if they had money expenses for something they bought for the apartment after I indicated that I was willing then I can make them whole. I took it in stride and bh none of the curses came to be. Hashem should help.

Did they think having the inlaws call and screaming and cursing will change your mind? If you had any hesitation before I'm sure that convinced you.

[S209]

Did they think having the inlaws call and screaming and cursing will change your mind? If you had any hesitation before I'm sure that convinced you.

You’d be surprised. Getting yelled at can frighten people into doing things they don’t want to.

[knowitall]

Outside of the Jewish world, many rental contracts allow for an increase of X percent, or CPI, whichever is greater. CPI in the last 2 years has been north of 5%, so landlords may be able to argue for a slightly larger increase.