State Specific Question About: MARYLAND (MD)

My rental condo fee just got increased from $186.00 monthly to $286.00 by a new management company that just took over the management. My tenant has been in this property since August of 2011, and I have not increased her rent since then.

How do I increase the rent to reflect the new condo fee?

If you are on a lease when the lease expires send them a note with proper advance notice that rent will be increasing $100 per month. If on a month to month agreement send them a note (again with proper advance notice) saying the rent will increase $100 per month.

I would expect them to move, unless rent is currently more than $2K per month. It's my experience that increases more than 5% result in tenants moving.

You might also prepare for an extended vacancy at the new rate unless your current rent is below market.

Keep in mind that the market sets rent not your expenses. A better approach is to do a market rent investigation and make sure you are at market rent. If your current rent is market rent then you need to eat the $100. If not then you can raise rent to market. If they move you can rerent if not then you are good.

If your tenant move it will cost you $1,000 or more, to clean and find a new one.

Show them the increases thank them for the time spend, and ask them to split it with you...watch for their reaction...

I'd send them a letter TODAY explainng how the rent for March 1 (or whenever the increase takes place) just went up due to the condo assoc fee increase. Attach a copy of the condo letter.

If res complains, offer a 30 day period before increasing.

If res balks again you might have to wait for lease renewal.

EVERYTHING is negotiable. If the res accepts it, it's done.