Sending out emails and notices to those with expiring or expired (M2M) leases. We let things slide a bit during Covid for various reasons (#1 reason everyone was paying us! Didn't want to pi$$ one off and have them stop and no way to evict...) but now we are back in business.

So I'm telling folks: "Here's your new 2022-2023 rent under a new lease: $$$$$ (let's say it's gone up max $50, some only $25 depending.) With that we require 2x the rent increase added to the SD Trust Account. If it's quite large, I'll take payments.

That's a good approach - to give them a choice. Everyone likes to feel like they have some control over what's happening.

And, either way, you gave them the two things to pick from that both work for you.

Following..

So far, two signed new leases, two are waiting for their new lease, and one move-out - but she is Coast Guard and has orders to leave in July, so can't sign a new lease. It's not because of increases or anything.

Just got a yes from someone else this morning: Yes, new lease, yes $25 increase, yes $50 increase SD. Very nice: "We'd love to sign a new lease!" So it's working.

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Here is what I said to them:

In 2022 we are requiring everyone to increase their deposits if they want to sign a new lease.

Your rent is $1250 and going forward beginning March 1st, 2023, your rent would be $1275.

So a new annual lease would see a $25 increase in rent for you, and an additional $50 would need to be deposited towards (refundable) security.

If you don’t want a new lease and want to remain on a M2M basis, your old lease called for a 10% increase in rent for that convenience. That would make your rent $1375.

Let me know what you want to do: stay and sign new lease at $1275 per month, plus $50 increased deposit, or go M2M for $1375 per month.

So far, none. I've signed 4 or 5 leases since yesterday.

The one I expected the MOST pushback from was a couple of months ago from my twelve year tenant. She paid a Security Deposit and "Last Month's Rent" back in the day (I don't do that anymore.) Her rent has barely gone up since (our fault.)

So I raised her rent $200 (still $200 under and she knows it!) and credited Last Month's Rent towards new SD and she had to pay an additional $500 to come up to the total of 2x the rent.

She paid the rent without a squawk, and paid the $500 in two increments. NO problems.

NE, have you never had a good tenant go bad? A long-term tenant? Have you never worried, at least, that they could?

The more money I have in trust for them, the more they WILL get back if they behave like adults, the happier we all are.

I have been thinking of doing the same thing with increasing the SD when the rent goes up. Is there any downside you can think of?

No or I wouldn't be doing it. Some would say increase rent and keep it, but I love getting a spotless undamaged unit back and being able to write a check for a full refund.

I would simply increase the monthly rent. I can keep the monthly rent amount. I can't keep the SD.

How a tenant will return a home is usually apparent a few months into a lease. If a long-term tenant goes bad, I want extra funds that I can keep, not return.