Can management automatically renew an apartment lease and what to do?

July 31, 2015 6:50 PM

The end of my lease is coming up at the end of August. On their form that was given to me it states "We do require notice to vacate or renew... Failure to give proper notice to vacate will result in an automatic extension of your lease at the proposed renewal rate, plus $150 additional each month for month to month fees".

So I have a few questions. Is it actually legal to automatically renew an apartment lease without explicit consent? This is in Illinois.

Also, what should I do? My rent is currently 840. The proposed renewal rate is $880, which I can't afford, but I can afford it better than being forced to leave or paying $1030 a month (ludicrous). I tried to contact management in the last few days to discuss a lower rate however they never returned my voice mails.

It says if they don't receive my intent to renew or vacate form by today, it will be automatically renewed at $1030 a month as stated above. Is it legal for them to add $150 a month like that? It seems insanely bullying to me.

So I missed the deadline because I was not able to negotiate. So should I wait till Monday and try to negotiate belatedly then (or will I already be on a lease for $1030 a month by that point)? Or should I sign the intent to renew right now at $880 and stuff it in the drop box and hope they honor it ( and do you think they will, since technically they still won't get it until Monday so maybe they'll just charge me $1030 anyway)?

So what should I do? Is there any hope of me paying less than $880 now? Is there hope I'm not at this moment on a lease for $1030 now (because I missed the deadline already)? Should I sign this intent to renew form right now and stuff it in the box right now, or withhold it and hope to talk to someone on Monday? I'm very stressed, obviously I should have done this a week ago, but I didn't realize it would take multiple days to get in touch with them ( I left a message again at 2 pm today before the deadline, but no one got back to me).

Thanks for any advice!

posted by Blitz to Law & Government (11 answers total)

Is it actually legal to..

This entirely depends on where you are.
posted by desjardins at 6:51 PM on July 31, 2015

Where in Illinois? If you're in the Chicago area, contact the Illinois Tenants Union. They were super helpful when I was having an issue with my landlord.
posted by ArbitraryAndCapricious at 6:55 PM on July 31, 2015

Best answer: I think they must mean that you can either (a) leave, or (b) sign a new lease for $880/mo, or (c) go month-to-month at $1030/mo. Failing to do either (a) or (b) will default you to (c).
posted by Blue Jello Elf at 6:57 PM on July 31, 2015 [10 favorites]

Best answer: They're not "automatically renewing your lease." They are saying that if you don't move out, and you don't sign a new lease, you will convert to a month-to-month lease, with the same terms as your old lease, at a higher rate. This is typical rental law everywhere I've ever lived. Whether or not the "higher rate" part is legal without a new lease is up to your state law. The $1030 rate would not be your rate for a whole year. It would be the rate for one month until you sign a new full-term lease.

I would be incredibly surprised if they didn't let you sign a new lease on Monday for $880 per year.
posted by muddgirl at 7:00 PM on July 31, 2015 [8 favorites]

Response by poster: Okay, so according to Blue Jello's formulation, I have not by defaulting to C, forfeited the possibility of b? I can at the very least stay where I am for $880 a month?

I saw no explicit distinction between renewal and extension, but if they mean only that I would pay $1030 if I were choosing some weird month to month thing, that doesn't seem as horrid.
posted by Blitz at 7:06 PM on July 31, 2015

Month to month is what it's called when you're renting without a lease that entitles you to a specific period of time. Some rentals are always month to month, some go month to month after the lease expires. That's normal. While I've never personally encountered an automatic increase in price for being month to month, it wouldn't surprise me.
posted by stormyteal at 8:05 PM on July 31, 2015

Best answer: My lease explicitly states that were I to stay beyond my lease period and go month to month it would be a rate $200 higher than what I pay. I can either go month to month at that rate, move, or negotiate a new lease with a negotiated rate. I suspect, without seeing the lease and knowing the specific laws in your jurisdiction, that Blue Jello Elf is correct.

If you were me or I was you, I would call them on Monday morning and tell them you wish to negotiate a new 1 year lease. I would propose to them that you stay at your current rate because you are a good tenant, you pay on time and it will not require a new paint job, cleaning etc. They will likely say that all that is true, but we want a 5% raise to $880. Depending, I would say that in the spirit of cooperation you would agree to split it and sign today for $860. If they say no, tell them you need to think about it and ask if they will reconsider. Then go from there.

Good luck. You sound a little frazzled. No need yet. This should work out on Monday. Enjoy the Illinois summer.
posted by AugustWest at 8:26 PM on July 31, 2015 [1 favorite]

Response by poster: I am guessing you all are right, and that the $1030 rate was only for not being on a lease, and I can still do this (be on a normal lease) despite today's date. Thanks! What a relief to know I won't have to pay $1030 in order to not move out now! Yes, I was frantic about that possibility.
posted by Blitz at 9:03 PM on July 31, 2015

AugustWest is pretty much right, but a couple of things:
1. You need to go into the office in person on Monday. They will be very busy on the first Monday of the month, and will probably not answer the phone or return messages.
2. You will probably not be successful in getting them to negotiate, because by waiting, you have lost the biggest card in your hand when it comes to rent negotiation - it's now too late for you to leave. Now they know they are at least getting one month of $1030 out of you and they have a month to find a new tenant. If you had gone to them last week and said I am leaving if you don't keep it at $840, they would have been looking at the possibility of no more money from you and one week to find a tenant. If you truly cannot afford $880, you should probably spend the weekend finding a new place.
posted by Rock Steady at 5:24 AM on August 1, 2015 [1 favorite]

It may be worth noting that depending on your local rental market it's possible you could get a concession by offering to sign a two-year lease. (You'd also avoid having to go through this again a year from now, though who knows how much they'll raise it subsequently.)
posted by nobody at 6:16 AM on August 1, 2015

I just wanted to chime in about "option" C. In many locations it is extremely difficult to evict a renter. As renting is their business, landlords know this. So, when a lease is up, and the renters don't want to sign a new lease, what happens? In many places it's common for the lease to specify the terms. Such as "fine, do that as long as you want, but be forewarned, the price will be steep!" That is what is happening in option C. They want a one year lease, but they're not going to begin eviction proceedings if you decline to do sign, decline to leave, but agree to keep paying.

In general, they want good tenants. People who will pay on time, contact them only for serious, necessary repairs, and sign new leases. If you are a good tenant, there is a reasonable chance that talking to them on Monday will work out ok for you. Whether you can convince them to lower your rent back down to your current rent depends on why they're raising it, what the market rate in your area is, and how much they like you / your argument about why it should be lowered.
posted by Phredward at 6:32 AM on August 1, 2015 [2 favorites]