I have a house with "marginal" tenants. They are my worst tenants, but they don't behave badly enough to justify immediate eviction...they sure push the envelope though.

Is there anything illegal or wrong with raising rent after the lease is up based on "performance" of the tenant? In other words...

Tenant 1: Great tenant, does it all right...after lease is up I agree to renew for another year at no rent increase.

Tenant 2: Marginal tenant, pays late (with late fees), not caring for property well enough to satisify me, does not communicate/respond, etc....after lease is up I raise their rent 8%.

I've raised their rent twice and they keep paying! LOL

In a sfh, other tenants won’t even know. I don’t have any multi-s, but, I suggest looking at fair housing implications. Can it be construed as discriminatory? Tenants will talk. Even some of my sfh Renters may know your other tenants, but, then a variance in rent price can be more easily explained based on different amenities in the houses, or locations’ desirability. In a multi family, it might not look good if the one unit with (fill in the blank) type tenants pays much more than others.

Busy points out a question I've always wondered about multis. With all my SFHs, I can price all of them completely independently and raise their rents independently. Some of them have rents differ by $100 because they were rented at high season or low season.

Every year ALL get increased and not just to cover expenses. Jim in OC how can you keep ahead just increasing what breaks you even?

We explain now that the economy is picking up values are increasing on the property's which means taxes are going up and that means insurance is going up. The cost of Royal Caribbean cruise are through the roof and do you know how much a drink package is a day when cruising? Ops!! how they get in there.

2 prices are important: market price (what you CAN get) and actual price that you charge individual tenants.

There are sometimes worthwhile trade-offs between market price and actual price, based on convenience to LL, ease of getting along, anticipated wear-and-tear, collection of rent, etc.

Absent rent control, there is no reason that you need to be limited in choosing your actual price.

"...not caring for property well enough to satisify me..."

Thanks all.

You should be raising everyone or 1 might plead discrimination and prevail in court, single or multi unit.

You should be raising everyone or 1 might plead discrimination and prevail in court, single or multi unit.

B.S. I would raise their rent as much as you want to and think nothing more of it. Don't believe or worry that one in a billion chance that you could be considered discriminatory because someone is not treating your property with the care you would like. Just make notes in their file for the reasons mentioned and move on.

BTW, when I send out letters of rental increases I often recommend to the tenants how they can help me keep their rents down. This could include taking care/better care of the things you would like to see improved upon.

Hoosier,

Indiana law allows the LL to raise the rent with a 30 day written notice.

" I seem to recall that if the increase is retaliation for something it can be challenged? But if you are not litigating with them now then you are not formally retaliating and they should not realize that you are retaliating for their bad behavior. "

In most jurisdictions, retaliatory action by landlord occurs after tenant has invoked or attempted to invoke some response from landlord that tenant had a right to request. In short, when tenant attempts to invoke some right which he has, such as asking for repairs, asking for a reasonable accommodation to disability, asking for some facility that building code requires, etx. Most jurisdictions then provide immunity from retaliation for a period of time, such as 180 days.