Purchased 3 duplexes w/below market rent & tenants on m2m leases
Hey all,
I'll be taking possession of 3 duplexes, next door to each other, in about 10 days. Rents run between $445 - 530 for each unit and are month to month leases as this point. Tenants have been there from 1 year to 16 years. Rents in this same area are going for $600-625/mo.
My question is, what is the best strategy for getting all units up to current market levels without driving out all my tenants within the first 2-3 months? These units are in a great neighborhood in the best school district in the county and shouldn't be hard to rent.
My first thought is to have them sign a new month 2 month lease and then ask them to check out what they can rent a similar place for in the same school district and come back to me with what that number is and then we'll decide together on a new beginning rent price from there. I figure the month 2 month lease will let me get a handle on which tenants are a pain in the butt and which ones aren't. Then I can serve them notice and get new tenants in that will pay market rent.
What are your thoughts as to what i should do to get rents up without driving everyone out immediately? Thanks.