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I'd stand firm on a rent increase with another contract or tell them they have to move out. they signed the contract . They knew what it said.
I put a couple in a house in January . they paid me $2000 down and first months rent $700. They haven't paid since and we go to court next week but I think they will finally be out by this weekend.
I started putting a clause in my contract that states in bold print that if the lease payment becomes 30 days late it renders the contract null and void and the contract becomes a "rent only " contract. Just FYI
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