Commercial Rent Increase And Notice Questions

I have a commercial-zoned property, used as a tavern and eatery by one tenant for nearing 20-years. His modified NNN lease expired and he has been on monthly rental, but under the tenant requirements of the expired lease. He owes substantial arrearages for prior years' property taxes, so I declined to extend, renew or offer a new lease until the arrearages are paid. He had major financial setbacks but is generally a decent tenant, and is trying very hard. He's had below-market rent, and flat rents for multiple years at a time. Technically he's holding over (but with my consent) and I could have immediately doubled his rent under terms of the last lease, but didn't. 1- How much notice must I provide to the tenant in Maryland in order to raise his rent to bring it more in line with similar nearby property rents? 2- How much can I raise his rent? 3- How much can I raise his rent at one time? 4- Is there a limit on the number of times per year I can raise his rent on his current month-to-month basis?

[ Edited by Mabes on Date 11/12/2006 ]

I'm not in MD but I broker leases in Florida - some things don't change... my first thoughts are: 1. Do you want him to stay or go? 2. What are market rental rates and terms for similar tenants in your immediate (1 to 3 mile radius)? The difference between market rent you could reasonably charge another tenant and the amount you are currently receiving from your less than ideal situation is actually a "vacancy loss" rate. If it's substantial enough, then you're better off having an actual vacancy for some period and then moving a market rate tenant in. If the amount isn't substantial enough then you may be better off trying to work out an arrangement to bring the delinquancies forward and trying to structure a new lease going forward. 3. You need to review your lease and consult an attorney. Your lease out lines responsiblities and rights for both parties. It appears to be technically satisfied from what you write in your posting. Certain clauses sound like they apply for hold over but it also sounds like you're not exercising your rights - and not doing so now means you may lose the right to do so in the future. You could put yourself at risk if the lease doesn't provide for your ability to accept variances to the lease at will without compromising other aspects of the lease for doing so. "Being Nice" can get you into trouble if you then later try to put things back on track. Decide if you want to keep him as a tenant first, then do a market analysis to see how much you're really losing, then get an attorney to advise you on your resposiblities going forward and either restructure the lease or move him out.