What is proper notice required for raising rent in market rate lease?

Hi everyone.  I have a tenant under market-rate lease that expires end of this month (July 2012).  Tenant is in contract to buy a house so initially asked me for a 1-2 month extension until their closing, etc.  I was happy to accomodate that request but now the tenant has asked for a 6 month extension through Jan 2013 instead, so they can do some major renovations. The problem with accomodating that request is that my apartment will be vacant on the market in the dead of winter, which makes finding a renter much more difficult.  Furthermore, I have a wonderful prospective tenant who is ready to move in October 1, 2012 for a 2 year lease. So I want to give my current tenant **two** options: a) Tenant can stay until last week in September 2012 at current rent, on a month to month basis with pro-rated rent for the partial month of September.  That gives tenant 60 days notice to move out and find temporary shelter until he closes on his house and completes renovation.  _Does this meet the notice requirements to end the tenancy??_ or b) Tenant can stay for a 6 month extension.  Since I will lose my new prospective tenant for Oct 1 occupancy and have to deal with finding a new renter in the middle of winter, I would agree to grant the 6 month extension but with a 15% increase in the monthly rent.  _I have 2 questions here – is there a cap on the percentage increase in rent for market rate units?_  My rent is currently at least 15% below market so the increase would put it in line.  _Second, how much notice is required before I can start charging the increased rent?  Can I charge the 15% increase starting in August if I give notice at this late date, or must I wait until September or later before the 15% increase can take effect?_ I have reviewed the lease, and there are no provisions that cover timeframes for such rent increase notices. Thank you for any assistance.

myalias

in Landlord 12 years and 10 months ago

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slopegirl | 12 years and 10 months ago

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right, it’s market rate, if you don’t want to offer a six month lease, just don’t. we were in same situation with our tenant, I said, you have to stay until March 31, here is new rent (bumped it up but not to market rate) and she took it. they can always say no. you don’t have to let them stay at all…

Bklnite | 12 years and 10 months ago

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For a free market apartment, you need to give a month-to-month tenant at least 30 days notice to terminate. If you don’t accept rent after the end of the lease term you don’t have a month to month tenancy. http://www.housingnyc.com/html/resources/attygenguide.html#3 Yes, you can do a 2 month lease (or a 7 week lease or whatever it is you’re trying to accomplish) and you can offer a 6 month lease at whatever rent you choose – no cap on increases for FM – and the tenant can choose to accept your offer or to vacate at the end of the lease term