tenant wanting month to month lease after 1 year term expired

[chrisleinweber]

My good tenant just enjoyed November rent for free as that was the arrangement when they moved in Nov. 1, 2010.

At that time the rental market in Stettler, Alberta was flat. Today I have a couple of tenants waiting for a single family home. Todays market rent is $950. a month.

I gave them a letter stating that if they want to remain in the property paying the same $850. month rent they must sign a new lease.

They sent me a message back "Mark & I have decided that we will go month to month instead of signing a new lease. its not likely that we will be moving anytime in the near future, but we'd rather keep our options opened, just in case. I can, however, have a years worth of checks waiting for you whenever your free to drop by."

I'm not interested in a month to month tenant - I want a commitment as to the time frame. This property is a mobile home & winter bills are expensive if they choose to move mid winter.



I'm not sure what to do.

Can I give them 30 days notice to move on Dec. 1 so I can get a new tenant for Jan. 1.2012 paying the current market rent of $950 with a years lease?

or.... can I give them a 30 day notice to increase rent to $950. because the lease is expired.

 

[kir]

I would give them 3 months notice.

Personally, I would keep them since they are good tenants.



Also Just because the lease expired, it doesn't mean you can increase rent. (only after 1 full year).



Kir.

 

[richardkp]

What does the local residential tenancy act say? I know in Halifax the tenant has the right to do this once they have been there a year on a yearly lease and you can't refuse!

BUT....you can also give them a 90 day notice of rent increase. Here it is 90 days as that is the notice period they have to give to vacate. Could be less in AB.

 

[Thomas Beyer]

You cannot force folks in Alberta to sign a new lease.



You can, however, use one of these 4 options:

• terminate the lease with three month notice, or
• terminate the lease with 3 month notice, and in parallel give them a new lease, or
  give them a reasonable rent increase with 3 months notice (assuming more than 9 months in the property, i.e. 12 month total until first increase), or
  give them an UNreasonable rent increase, say to $2000, with 3 month notice.

Pick your option, and then they will respond accordingly.

 

[kfort]

How confident are you in your ability to re-rent in January? I'm picturing Alberta, new years day... Lots of folks lining up to move in your town that day? I found January in SK to be much more difficult than August..

 

[RedlineBrett]

Tenants need 3 tenancy month's s notice for termination of a month to month lease. You would issue them the termination notice then offer them a new lease at the rate you want them at. Make them re-apply if neccessary.



Either way you can't get someone in there for Jan 1 unless the tenant agrees and January is the worst month of the year to fill vacancies for.