Can a new landlord raise my rent 14% even if my old lease says it can only be raised 3%?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a new landlord raise my rent 14% even if my old lease says it can only be raised 3%?

I am a renter, and our previous landlord defaulted on his loan, so the bank foreclosed the property. The management company that is currently running our apartment building while it is in receivership is saying that the lease we signed under the original owner is null and void. Therefore, the portion stating that the rent increase on the next lease cannot increase three percent is not valid. Our lease is up in a couple months and they want to raise it 14%. Is this legal?

Asked on April 27, 2012 under Real Estate Law, Ohio

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Unfortunately, unlike a sale of building, where the buyer takes the property subject to all existing leases, a foreclosure does terminate any leases. Therefore, the new owner of the building (such as the bank) and its managing agent are not bound by the terms of the old lease, since the old lease has been terminated.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption