Info/experiences buying out renters in gentrifying area?
The incredibly noisy 6 member family on the top floor of my 4 family is making the quality of life horrible for me just renovating the unit below, It's just bedlam from 3:30 to 10 every weeknight, and all weekend. I can't imagine even if I can find a decent renter, they'll ever stay more than a year unless they're deaf. This family was there when I bought it in July 2012. I'm thinking if I can pay them a lump sum to leave I'll be ahead of the game if I don't have to have a couple of months vacancy on a more expensive renovated unit every 12 months.
This area is gentrifying, think Bushwick Brooklyn. The tenant has been paying $1000 since spring 2010, so I was going to give them a $100 raise this spring, the rent is not regulated. This is still pretty undermarket for a 900 sq ft 6 room place but my wife is reluctant to even let me raise that much.
If they weren't so disruptive I'd be fine with the rent, but I'm thinking maybe $3-4k might get them to leave. I recall on the Upper West Side in the mid 90's the typical going rate was $5-10k to clear rent stabilized tenants out for conversions. Any info from the Metro NYC crowd on tenant buyouts?