Rent increase with 2 offers in California Bay Area I just received my rent increase notice and noticed that there are 2 offers: One year lease contract would increase my rent by 10% Month-to-month leasing with the amount from #1 + $500. I got this notice 40 days prior to the current leasing agreement ends and I'm in California. I know that landlord must give 30 notice if the increase is &lt; 10% but the 2nd options is much more (>15%). Is it legal? Thank you.
The relevant law is section 828(b)(2) of the civil code: (2) If the proposed rent increase for that tenant is 10 percent or less of the rental amount charged to that tenant at any time during the 12 months prior to the effective date of the increase, either in and of itself or when combined with any other rent increases for the 12 months prior to the effective date of the increase, the notice shall be delivered at least 30 days prior to the effective date of the increase, and subject to Section 1013 of the Code of Civil Procedure if served by mail. Your landlord is offering to renew your existing one-year lease for a 10% rent increase, and as such, a 40-day notice meets the requirements of "at least 30 days". The fact that you're also given the option to change your lease terms at an increase of more than 10% is irrelevant.
Is this even legal? Yes, it is lawful. The Ontario Tenancy Act does not seem to outlaw that type of clauses. But the clause (or lease) will be binding only if you agree to it. Also note that the clause refers to reasonable costs, which implies that those costs must be for a reasonable cause. In other words, the landlord would be barred from recovery of legal expenses if you persuade the Board that the landlord's complaint is frivolous or vexatious. Notwithstanding that the clause is lawful, I would personally discourage you from agreeing to pay the adversary's attorney fees. Note that the clause may apply in the event that neither party fully prevails, whence it is in your best interest to preclude the risk of having to reimburse the landlord in that scenario.
My answer would be different if either Alice or Bob was the landlord, or the landlord had a separate agreement with Alice and Bob. If a single lease is written, per the comment, that Alice and Bob are components of "the tenants", and "the tenants" have rented the named premises, then they all have equal rights to occupy the whole premises under the lease. If the landlord is professional I will further presume they all have joint and several liability for the whole rent; it would be inequitable to alienate Alice with joint and several liability from any part of the premises without her consent. If there is a separate roommate agreement that allocates rooms and expected share of rent or controls behaviors, then that is a contract that can form as a meeting of the minds of the roommates where they each trade something of value, such as exclusive use of a room. The narrative suggests an original verbal agreement that Bob would like to change. That's nice but Alice doesn't have to agree; or can agree with other changes of value to her such as the ratio of expected rent reflecting the ratio of use and access to the space Alice would have.
am I obligated to pay this fee? Yes. You entered the lease despite been aware of the existence of that fee. That meets the contract law tenet that an agreement be entered knowingly and willfully. Does it not invoke an issue where they can arbitrarily set the price? If the landlord requires a fee that is unreasonably high, that would violate the contract law covenant of good faith and fair dealing. As such, that part would be unenforceable, meaning that the landlord may only charge a reasonable fee. Likewise, unless the lease clearly entitles the landlord to decide the telecom fee arbitrarily, the lease would fail to meet that extent of the aforementioned tenet of a contract being entered knowingly. Does this fall under the category of lease addendum? The form (or format) in which the requirement of telecom fee was mentioned --and agreed upon-- does not matter. The landlord only would need to prove that the tenant was --or should have been-- aware of that fee. Usually the landlord can prove that by showing/producing in court the lease with tenant's signature.
You need absolute written buy in from the landlord. His agreement is with you, not this new person. If the new person stops paying for whatever reason, then landlord is coming after you.
No The tenant is liable if they break a contract: there is no contract here. One of the tests for a contract is that there is an offer that if accepted will create a clear, unambiguous contract. Looking at the enumerated facts: Alan advertises a room to rent in a joint tenancy property in which they are lead tenant - not an offer, this is an invitation to treat Zoe views the room and verbally expresses an interest in renting it - not an offer, this is the opening of negotiations Alan passes on Zoe's contact details to the estate agent - not an offer, this is communication between one party and their agent The estate agent contacts Zoe by email, providing a draft contract and asking for further information in order to complete her details - not an offer, the contract is a "draft" Zoe provides the requested details, again by email - not an offer, just a transfer of information The contract is drawn up and the estate agents inform both Alan and Zoe that it is ready to be signed - this is an offer A week later (having not yet signed), Zoe informs the estate agent that she no longer wants to take the room - ... that was not accepted Further, the tenant is liable if they are promissory estopped - they have withdrawn a promise made to a second party if the latter has reasonably relied on that promise. Zoe has made no promises other than one to negotiate - she has negotiated.
If it were me, I would leave. Who wants to rent a room in a home where you are not wanted? However, there should be concessions. I would ask for 1.5 months rent refunded, but would happily settle for one month. I am sure there are many nice rooms, close by, where you are welcomed. Given additional information commented by the OP, the landlord is looking to increase his rents. Evidentially this municipality has strict rent controls. In this case, I would enter negotiations with the landlord. I would offer him a percentage of his anticipated rent increase and probably start at 50%. If the OP has been a good tenant (always paid on time, and low maintenance) the landlord might see this as a bargain. No need to find a new tenant and no need to vet one that might pay poorly. The better the tenant has been, and the more strict the renter protection laws the more appeal this offer will have to the landlord. The benefit for the OP is they don't have to move, or find a new place with its associated costs and inconvenience. If the landlord is just a mindless corporate drone with no decision making power, this will not work.
If there is a contract, Bob is entitled to damages There probably is a contract in this case - the landlord (through their agent) has made an unambiguous offer which Bob has accepted by signing the lease. The contract comes into effect with Bob’s acceptance irrespective of if the landlord has (or ever does) sign it. If the agent has acted without the landlord’s authority that is a matter between them - the landlord is in a binding contract with Bob by virtue of the agency doctrine.