Just want to ask everyone's opinion if I should increase rent when renew the lease.
Tenants have been rented for 2 years and would like to renew at the same rate. In the past 2 years my rent was $150 lower than similar homes in our neighborhood. Last week when I asked tenants if they would renew at the same rate, they said yes. Then several days after that, they reported a burst pipe when they tried to use the outdoor faucet. My impression is that they did not disconnect the garden hose in winter even though I reminded them before winter, but they said they did actually disconnect the hose. Checking with several plumbers, not disconnecting the garden hose seems to be the only reason that can cause pipe to freeze and crack. After they reported the issue, I asked them to check if the house or basement is ok without leaking water, they said they would. But when I went there after work, they said they haven't checked basement or house yet if there is leaking water. I did the check myself.
The wife will deliver a new baby beginning of April and their lease ends at the end of May, so they said they don't want to move. But in the past 2 years, I just feel they did not care much about the property. Having 1 small dog and 4 little kids (another 1 to add soon), the new wood floor seems to have lots of scratches and dents just one example. There are many other things that show they don't really care. Even though my rent is $150 lower, they seem to not appreciate it at all.
My questions:
1)shall I just increase $150 rent? The wife does not work and anything related to money, she would say they have 4 kids and another one soon (meaning money is very tight).
2)Also what shall I say about this change in rent? Since I offered the same rent a few days ago, but because of the leaking pipe issue made me feel they don't care about the house at all and the man was very indifferent. This year my mortgage and property tax will all increase, so I think it is not worth it to keep the same rate but still have to spend more time to deal with hassels in that house. This is the house I spent the most time.
Can I break previous offer and increase the rent? Will prepare for the new lease and send 60 day notice at the end of this week. Thanks in advance for everyone's opinion !
