Just not sure if its common or bad form to wait till its so close for rent to be due as I am not familiar with these types of customers.
A few lots are at $250 instead of $350, so not a nominal increase for a couple lots.
The rest are $15-$30 increase. Rents are due on first of month, so if I notify today they have 7 days to come up with the extra money. I dont know if $100 is a big issue for my tenants. The other option is I wait till next month, but I lose a few K in revenue, and this park is pretty low cap as is.
Check your state guidelines. Most require a 30 day notice or longer. Even if it’s not mandatory where you’re at I’d recommend holding off until the next month. A rent increase is never great news as a tenant and giving a weeks notice will most likely be seen as “heartless” or “mean”. Do yourself a favor and wait. Plus, it may keep you out of the local paper as a “ruthless landlord “.
I cannot imagine that you can raise rents with 7 days notice in most states. First, you have to check the existing lease. If tenants are on a long term lease, you will have to wait until the term expires, then provide the notice that the lease requires - often 30 days. If tenants are not on written leases, then you have to go by state law in terms of verbal tenancy. All of the states we have encountered require 30 day notice, but states we have not encountered may require a different notice period.
From a practical point of view, 7 days notice is not realistic. Tenants sometimes plan their grocery, doctor, and money-order pickup every week or two. By giving them such short notice, you are disrupting their logistics schedule. They may not even read the notice until after they pay. We once gave 20 days notice that rent would not be accepted onsite anymore, and it was a big mistake. We should have provided at least 30 days notice even for that.
Above and beyond the rules and laws the first question you should be asking is what your proposing a decent and moral thing to do. Would you do it to your grandmother who is on a fixed income.
Some states require a 60 day notice to raise rates. You need to know the laws in the state your park is in. You should have done this as part of due diligence and even before you made the offer.
Does the state your buying in have an eviction ban in place?
Not trying to be rude you just need to up your game. Know the laws before you make an offer it can materially change your business plan
As we are heading into the holidays, do something nice for your new tenants. Let them know that the necessary lot increase will be in January or February. Kindness goes a long way, and also, we are in the middle of a pandemic. . .
I doubt you can do that. In you have to give a month, at least 30 days and during the COVID pandemic there were no increases or evictions allowed. Period. You should check with your local city bylaws or a good lawyer on less than that.
As an owner, why would you do that to people at this time & right before Christmas?
Do you want to get coal in your stocking? Ha ha
I would ask what kind of people live there?
Seniors? I doubt they can afford it right now unless your new President is going to increase their pension amounts?
Working people? Do you know that most working people will not get a raise until the New Year, and likely the holiday season will take up a lot of their earnings, but some may get a bonus.
If I were you I’d wait until January.
You might even want to arrange an informal “meet & greet” COVID style before you send them a rent increase.
BTW rents went up $75/yr here for the last 10 years. It’s now $1115/month per pad & owners do yard work & incl water/sewer/garbage + parking pad for 2, bad wifi. Cable & electric extra.
No trailers or rec vehicles in yards, security & credit checks req. Pay for storage in secure yard is $50/month. Used to include natural gas now all metered.
Rent increases sent out Feb 1 could not be implemented until Aug 1, due to the pandemic rules.
The company owns some of the homes & rent at $1300/month maintenance included, electric/cable extra. They will also evict and/or foreclose in 14 days for no -payment and then Reno the older units, which they buy for cheap & then sell or rent out.
BTW Brand new 2 storey townhouses built across from us & are 3 bedroom/2 bath w/parking under 1st floor in garage & 1 outside are $1500/mo rent only. No owners.
But SENIORS cannot live in those townhomes as there are 20 stairs up to the main floor & 20 stairs up to bed. We bought mobile homes to retire in & live without stairs.
you have to give a month, at least 30 days and during the COVID pandemic there were no increases or evictions allowed. Period. You should check with your local city bylaws or a good lawyer on less than that.