You buy a duplex and inherit a long-term tenant who’s paying 30% below market rent. They always pay on time and have been there for years, but updating to market rates would increase cash flow significantly. What would you do? • Keep them for stability and lower turnover risk? • Raise the rent slowly over time? • Or start fresh and re-list at market rates? Keep them for stability and lower turnover risk? Raise the rent slowly over time? Or start fresh and re-list at market rates?

Keeping tenants at their current rent offers a stable, low-risk approach. It ensures guaranteed income from reliable, long-term tenants who pay on time, while avoiding turnover costs like vacancies, cleaning, repairs, and leasing fees. Additionally, maintaining a strong tenant relationship reduces stress and management demands. However, this strategy means forgoing approximately 30% of potential rental income, which could result in significant opportunity costs over time. Furthermore, if expenses such as insurance, property taxes, or maintenance increase, your profit margin may decrease.

Updated about 7 hours ago on 08/27/2025. Most recent reply

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David LittPoster

#1 Foreclosures Contributor

Foreclosures

Would You Keep the Tenant or Start Fresh?

David LittPoster

#1 Foreclosures Contributor

Posted August 27, 2025 16:25

You buy a duplex and inherit a long-term tenant who’s paying 30% below market rent. They always pay on time and have been there for years, but updating to market rates would increase cash flow significantly.

What would you do?

Keep them for stability and lower turnover risk?
Raise the rent slowly over time?
Or start fresh and re-list at market rates?

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