Legal Question in Real Estate Law in New Jersey
unfair rent increase
For the last year, we have been tenants of a 3BR duplex. Our monthly rent has been $1600 and our deposit was $2400. A few weeks ago, our landlords told us on the phone that they were looking into raising our rent. We heard nothing else until a few days ago when we received a new lease in the mail with an $850 per month rent increase (now asking for $2450 per month)and demanding a new deposit of $3600, 1 1/2 times the new rent, not even taking into account the deposit we first paid when we signed the original lease. I realize that our landlords did not give us any official notice of the rent increase and that is in our favor. Is there a decent chance that a judge would find this rent increase to be unfair and judge in our favor for something more reasonable? I am assuming we ignore the new lease and continue paying the current rent until our landlords try to contact us, but I have no idea what what on earth do we say when they ask us what is going on? I am afraid that if we tell them, they will have the upper hand somehow, and could use it against us.
1 Answer from Attorneys
Re: unfair rent increase
Several points to consider:
1. Did the landlord give you timely notice, as required by the lease? When did they have to notify you-usually in advance of the renewal as specified in your original lease. If the original lease term had expired before the notice, or they did not give timely notice, there may be a provision in your lease allowing for a renewal, automatically, at the original rent. This would prevent the new rental from coming into effect until proper notice is given.
2. Does your community have rent-control laws, which limit annual increases? You can check this in the Town Hall of your community.
3. The security increase must give you credit for security on hand. Thus, you need only deposit any differential to bring you up to the new requirement. Plus, most residential lease security provisions require the landlord to pay interest on existing security (albeit very nominal). If the interest on your account has not been paid out, it should be credited to the new security requirement.
4. If the landlord acted timely, and there are no rent-control laws, you would have a hard time in Court contesting the increase, even based upon the size of the increase. Equity does not prevent contractual rights from being exercised, even with a 50% increase.
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