Legal Q & A: CAN I IMPOSE A MTM FEE?

Mark Zinman | Zona Law Group

CAN I IMPOSE A MTM FEE?

Question: I was in talks with my tenant about potentially renewing his lease. However, he never signed a new lease. The old lease has expired and he hasn’t moved out. Can I charge him a $200 month-to-month fee?

Answer: You can only charge that amount if it’s set forth in your last lease with him that just rolled month-to-month. Unless your lease states otherwise, when it expires, the default is that it continues on a month-to-month basis using the same terms. Therefore, if the lease provides a fee or an increase when it is month-to-month, that is enforceable. However, if that is not in the lease and no notice of increase is sent, the old terms simply continue and they just have to pay the old rental amount. Also, if you properly serve a rent increase notice, then you can change the rent to the rate you want. What is important is that it is served timely and served properly (hand-deliver or certified mail, not posting). The tenant’s remedy if they don’t like the rates, is to serve a non-renewal notice and move out.