Adjusting rents on current tenants
My offer on my first rental property was accepted today and I already have a tough decision to make.
The basic info on the property:
-Asking 139,900, they accepted 134,000 and seller pays closing cost.
-Triplex with two-bedroom units.
- Gross rent is $1800 per month and I pay water.
-One tenant is on a lease that expires 7/2015 and the other two are on expired leases.
That last point brings me to my dilemma. The previous owner wanted to renovate #1 and it was occupied. #2 was empty. So they offered #2 to the tenants that were in #1 for $500 per month. #2 was previously rented for $750. The other rents are $600 and $700.
So my question is how would you all handle this now that there lease is expired? Would you raise the rent on the current tenants or wait for the next tenant and set the rent at $700 or $750? Or meet the current tenants in the middle at $600?