Under Contract on my first Triplex, have some questions

[Damian Napo]

Hello! New to BP, excited to be here! I'm under contract on a Triplex in eastern TN (about 40 minutes north of Knoxville, closer to Morristown) and should close at the end of the month. I purchased raw land before, but never anything with an improvement. I have a few questions about managing tenants. 

The building has 3 tenants in place, all on monthly contracts. One has been there for 10+ years, a single woman who's kid moved out but says she wants to stay. Said she hasn't had any serious issues in her time there, and she keeps it clean. The second is a younger couple who's been there about a year, they do a very nice job maintaining their unit, and would also like to stay. The third I didn't meet, but is definitely the dirtiest- nothing to gross, but a little bit of a 'hoarder,' and definitely not the best smelling unit I've seen. All units are around the same square footage, 2 bedroom 1 bathroom, with their own driveways. It's on a hill, with 2 units on the street level with driveways, and a driveway that goes down the hill to the back to the bottom unit, which is where I'd want to stay. 

My Questions: 

1. I'd like to live in the unit the younger couple is staying in around the back of the house. Ideally, I could get them to move unto the unit to replace the dirty guy. They have 2 cars, and the driveway for the upstairs unit can fit 2, but it'd be better if it was expanded so they could park next to each other rather than in a line. I don't mind making this improvement for them. I'd also offer to help them move their things up if they'd like. Do you think this is a reasonable thing to ask? 

2. Rents are too low. They're at $625 per month. Market rent for that area seems to be around $800-1,100 for similar listings. I'd like to raise all rents to at least $800 per month, but I feel like that's a pretty steep raise in price, especially for the woman who's been there for a decade. Could I maybe do $700 for 3 months, then $750, then get it up to $800-850? Or should I just raise the rents to $800, see who moves out, and occupy that unit? 

3. I'd also like to get them off of monthly contracts and onto longer leases. Ideally, I could get the 2 I like onto yearly contracts. I'm thinking maybe tell them I want to raise rent to $1,000 per month, but if they sign up for 1 year, we could do $800? 

I do plan to make improvements to the property, like renovating the exterior (nothing crazy, mostly just light landscaping, painting the metal roof, painting the window trim, adding shutters, expanding the driveway if needed). The bottom unit has carpet, which my wife absolutely hates, so we'd be pulling that out and putting LVP or maybe getting lucky with hardwood under it- there's hardwood in the kitchen already, and it's from the 60s so I think there's a decent chance of it! There's also a walled off section in the kitchen that seems like it was built around a staircase when the basement was turned into another unit that could be removed to expand the kitchen. Other improvements like renovating the kitchen and bathroom would come in due time. 

Sorry if I wrote a bit too much, thanks in advance for any insights and I'm excited to be part of the BP community! 

[Tre DeBraga]

Welcome to BP and congrats on the triplex!

**On moving the younger couple:** Not an unreasonable ask, but think about the condition of the unit you're moving them into. If it's in worse shape than their current one, you're asking them to downgrade AND take a rent increase simultaneously — tough sell. Get the third tenant out first, do a quick refresh (flooring, paint), then make the ask. Much easier conversation when you can show them a clean, updated space.

**On rent increases — use the binder method:** Don't just slide a new number under the door. Sit down with each tenant, bring comps for similar units in the area, and show them where the market is versus what they're paying. Have an honest conversation about what works for both sides.

The goal isn't to maximize every dollar from good tenants — it's to get to something fair. A long-term tenant who keeps the place clean doesn't need to be at top of market, but getting her from $625 to $750-$800 with proper context is very achievable. A gradual step-up can help soften the transition for tenants who've been there a long time.

**On yearly leases:** The binder conversation is the perfect moment to introduce this. Frame it as stability for both sides and keep it simple.

You're thinking about this the right way — good luck at closing!