Developer · Aguada, PR · Member since 2014 · 927 posts · 279 votes
I am in the process of closing on a duplex. Both sides are rented, but I plan on living in one side. additionally, they are rented way below market, so i plan on raising the rent by $150-$200 per unit.
When I close, i plan on sending a letter to the tenants with lease renewal information (increased rents), and asking for a letter of intent to renew or move. (Both leases run up 1.july 2.august)
IF both tenants want to stay and are ok with the rent increase, how is the best way to determine who stays or goes? I dont know either tenant or have any affiliation in anyway. they are preexisting to my acquisition.
Property Manager · Big Bear Lake, CA · Member since 2013 · 585 posts · 330 votes
11y
I would look at all the information you can get on both tenants. Pick the best one. Then send the rent increase notice only to them. If they stay, then it's an easy decision. You can then give the other one the proper notice to vacate.
If the best one decides to leave, based on the rent increase, then send the letter to the other unit.
I would not send both at the same time, in case they both want to stay.
Investor · Dubuque, IA · Member since 2015 · 88 posts · 19 votes
11y
make sure the one that's up today hasn't already signed a new lease for another year otherwise they are there unless you buy them out of their lease. Also do your background checks and credit checks and everything. See who fits your criteria the best and stick with them if it doesn't matter which unit you're going to live in
make sure the one that's up today hasn't already signed a new lease for another year otherwise they are there unless you buy them out of their lease. Also do your background checks and credit checks and everything. See who fits your criteria the best and stick with them if it doesn't matter which unit you're going to live in
The leases run up in July and August. They know the building is being sold and will be on a month to month.
I will do proper screening for the tenant that stays. It does not matter which unit I live in. they will both need a little cosmetic touch ups and I can increase rents to market in the next year or so.
Vendor · NY, NY · Member since 2009 · 175 posts · 52 votes
11y
Who has a more stable income? Who has more income? Who has paid the rent on time more often? Those are the questions I would ask. Damage is harder to assess unless you can do a thorough walk through.
Investor · Polk County, FL · Member since 2014 · 144 posts · 36 votes
11y
Definitely deciding based on rent record/credit history is best move. You can run a credit check on them instantly. Does the prior landlord keep rental payment record? Congrats on getting this, and managing to live in one of the units!