I'm facing a difficult situation here with my duplex. The market rent has dropped here in the neighborhood with my duplex is, and I currently have a long term tenant that pays $525 and a vacant unit that I'm trying to fill. Similar duplexes in this neighborhood are renting in the range of $395-$475 in similar condition. I'm thinking on lowering my rent to $475 since I'm having trouble renting the unit, but I don't know what to do with my Tenant he has been a great tenant always pays on time and does not bother me with anything. Is the only solution here to lower both sides down to $475 or how can I justify renting one side for $475 and the other for $525. I'm just trying to be fair, but don't want to hurt my income neither. Both sides are identical.
Thanks in advance.
HI Adrian! Month to month or year lease? If it's a year lease, how many months are left on your tenants current lease? If both units were rented at the new market rate, would you at least break even (Cover expenses plus maintenance budget)?
Hello Jordan, thanks for your input. My current tenant is on a month to month and has no intentions of moving anytime soon. If I lower the rents to market I will still cover the expenses and possibly still cash flow if nothing major happens. My current tenant does not complain about the rent at all. He also went through a foreclosure before he rented from me so his credit is not that good.
IMO: If your duplex is has better curb appeal than other duplexes on your street and manage the duplex properly, you could maintain your rental premium. I don't know what your tenants financials are, but for $50 I don't think he wants to begin the time intensive moving process.
Yes, you are correct. He actually just renewed another year lease with me. I'm just going to honor the contract like a colleague or mine suggested and possibly lower the other side to fill it. Thanks
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