First Property- Tenants

2 Replies

Getting ready to close on my first property (2 family). Tenants in one unit are great people and clean but are paying under market value. Do I have them vacated at closing and replace with higher paying tenants, or do I leave them in there for a little while I get my feet under me? Will still be cash flowing if I let them stay (although not as much as I could be). Also worried about money lost during vacancy if I have them vacated and cant fill quickly (just first time nerves I suppose).

@Joe Benson how far below market? If they are good tenants and pay consistently I would work on raising the rent over a period of time. It may take a while, but if the numbers work as is you may just want to have a plan to get it to market. Keep in mind, if you chose to move them out you will have some expenses to ready the unit for the next tenant. Victoria