Legal Question in Real Estate Law in Nebraska
Lease and rent increase
We signed a six month lease two years ago. The lease states it would be automatically renewed at the end of that period. The people that owned the property sold it in May 2002 and they stated the lease would transfer to the new owners. Is this legally binding now? Also we got a letter from our new owners in January stating our rent was going up by $75 and that everyone was getting this same increase. We found out that not everyone is getting an increase and our neighbors who are renting the same 2 bedroom town home are paying alot less rent than we are. I have written a letter to the owners to find out why. anyway is it illegal to charge another tenant more rent for the same identical town home than what is being charged to other tenants? Do we have a legal case against the landlord?
1 Answer from Attorneys
Re: Lease and rent increase
Your lease is the key to the answers you are seeking. I don't know when your lease expired and renewed compared to when the new owners bought the property. If your lease had renewed automatically before they bought the premises, they are bound by that lease and its terms until it expires or until it is terminated under the provisions of the lease, or by law [for non-payment of rent, or violating the terms of the lease, and appropriate notices are sent and not complied with, for example]. The new owners may raise rent according to the terms of the lease [most leases with an automatic renewal include a provision which allows rent increases with each renewal, or give the landlord the right to increase rent after giving notice described in the lease]. It is possible for them to be able to raise the rent of some of their tenants and not others because of the timing of their leases/renewals. If they are treating different tenants differently, that is their right, so long as the reason for the differing treatment is not discrimination according to race, religion, gender, etc.
In other words, the landlord can charge anybody whatever they want, so long as they don't give favorable treatment or unfavorable treatment to tenants because of race, religion, national origin, gender, marital status etc.
You should compare notes with the neigbors who are paying less and find out whether their rent hasn't gone up because their lease has not renewed since the new owners took over. They might be in line for the same rent increase you got when their lease renews
Hope this helps
Bill Jones