Heat and Nuisance Tenant

[Ian Handel]

Sorry if this becomes too long.

I have a 4plex in southern NH. Bought it 6 months ago. I pay for heat in two of the units ($375/mo on average through winter, oil heat) I want it out of my name. A new oil burner would be ~4k. I am in the process of getting estimates to install electric baseboard heaters and an electric water heater for one of the units (hopefully less than 3k). This way I will have one all electric unit and one all oil unit and tenants can pay it themselves.

Now it gets more complicated. The upstairs tenant is a pain in my rear. He changed out the thermostat without asking and caused a heating problem I had to fix ($200) and refused to pay for the repair that he caused, he got angry and I chose not to fight him on it. I will take it out of his security deposit. Then he overflowed a toilet and caused water damage (I didn't ask him to pay for it now, knowing he'll get angry, thats what the security deposit is for.) I have also received complaints from other tenants about him.

Below him I have a wonderful tenant, respectful, pays on time, clean and neat. He wants to move upstairs to the two bedroom with a roommate once it becomes available. I could then probably get more for his unit downstairs than I am getting now. ....Upstairs tenant wants a dog, to which I said NO. This will probably cause him to leave when the lease is up in September. I would rather rent the unit in July or August than September as it will be easier with the school schedule.

I am tempted to offer the upstairs tenant the ability to leave early with no penalty. He would only need to give me 30 days notice. Then I'll move the downstairs tenant upstairs, do the heating change and rent the downstairs unit. My other option is to do nothing and be patient and see how things unfold. Why move a paying tenant?

I'd appreciate any thoughts.

Thanks.