There is a triplex I am considering to buy and hold.
This is the first time I am doing something more than a duplex. Been mostly SFRs and duplexes but nothing bigger.
Do you evaluate based on comps or cap rate? There isn't anything nearby that's similar.
One issue I have is currently the unit is already rented to three tenants. Pets are allowed. One lady in a 1/1 has 2 dogs and 1 cat. On all my rentals I have a no pet policy and occasionally I will allow one cat. How do you deal with this issue?
You are going to have to allow pets since the current leases allow it. Then come renewal time you are going to have to allow pets too unless you want to kick the tenant out. If you get new tenant and have a no pet policy then their neighbors have pets, that's not fair either.
How would you transition to a no pet residence? Is it even possible?
I just purchased just under 50 units APT complex and I am in the same situation. I do NOT want to lose the good tenants that are currently under the old lease that have pets. I have tenants complaining that the previous owner said "no pets" but the people upstairs have pets etc....
Here's what I have implemented considering all tenants are under the previous owner's lease.
"Any tenant that has a pet in their unit, please advise the Property Manager. Some tenants are grandfathered in (trying not to upset other tenants who weren't allowed pets) with keeping their pets in their units. IF we find out there is a pet in your unit without our knowledge, a 3 day notice will be served. All tenants currently with pets will be charged a "pet rent fee" of $30 monthly. Certain restrictions are A.) Cats HAVE to be litter trained, if not they need to be removed B.) Dogs under 20 pounds are currently allowed with the grandfathered tenants.
All new leases will not be allowed pets.
As you can see, I am working on this issue as we speak. My PM & I do not want to allow pets but we also don't want to evict solid tenants. New lessee's are NOT allowed pets however the tenants on the old leases who currently HAVE pets are still allowed with a tenantive monthly fee.
Hope this helps!
UPDATE** Spoke to a tenant about the $30 fee.. let's just say he was SHOCKED (how my PM described situation)
I don't want to lose this tenant either. Hard worker, pays rent, keeps a clean place! Did I mention the dog is extremely cute and small? I am a small pup lover so I understand however I can't afford to have my units trashed by pets.
Thanks, yes this is helpful. I will look into this.
The only concern with your approach, is "when" the grandfather date is.
Are you saying you are telling them no new pets on the dat you take possession even though they are under the old lease which might legally allow them to add ten dogs before that expires?
I was under the impression whatever rule changes need to be done when a renewal is negotiated. You as the new landlord can ask, but really no way to enforce.
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