I was not very clear. My friends are the tenants. They were notified on June 11 of a rent increase to start on July 1. I think landlord assumed they were renewing their lease. My question about the rent increase is whether they have to pay the higher rent on July 1 or the old rent because they are not signing a new lease. They plan to give notice on July 1 to vacate by July 31.
You were very clear, it doesn't matter if you're the tenant, Donald Trump, Mickey Mouse, or a gorilla; the answer remains the same.
I'll repeat myself.
Their current lease expires 30 June, according to your representation.
If they "holdover" from 01 July through 31 July, because the lease expires on 30 June, they no longer will receive the current rate.
Therefore, the new rental rate would apply.
No, they don't HAVE to pay it, but by NOT paying it; the landlord will likely bring an eviction action.
However, they must READ their lease.
In certain leases, what they might do, would be called a "short term" holdover.
It might be capped at 30 to 90 days, and the rate could remain the same.
Read the lease because it could have the exact answer sought.
Have them read their lease, or do it for them, if they require further information; or speak with the landlord (or his or her representative).
If they give notice on July 1st, they can't move (without incurring more costs) on July 31st.
In your state, California, requires at least ONE MONTH notice for month to month tenancies.
Giving notice on 1 July and expecting to vacate on 31 July could cause problems.
At the latest, the notice should be given on 30 June, but why cut it so close?
They KNOW they are leaving on 31 July, so give notice on 16 June, 17 June, even 20 June, don't wait.
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Plus, I said this previously:
To end a periodic rental agreement (as California labels the type of tenancy you will soon encounter, a month-to-month agreement), you must give your landlord proper written notice before you move.
In your case you must give the landlord the same amount of notice as there are days between rent payments.
You pay your rent monthly, therefore, you must give your landlord written notice at least 30 days before you move.
I suggest you serve your move out notice today, in person and also by certified mail (return receipt requested) with an effective move out date of 31 July 2015.
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Again, have them read their lease and communicate with their landlord.
Why?
Because they likely want to maximize what they receive on their deposit back.
Find out from the lease and the landlord HOW to make that happen.
They should also schedule a final breakthrough on the day they depart.