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345
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Cody Barrett
  • Phoenix, AZ
138
Votes |
345
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awkward... first lease signing of my career.

Cody Barrett
  • Phoenix, AZ
Posted

So I inherited a tenant who has been there since 2009... I think he used that to try and reason with me on stuff.  He is also paying 150 dollars below market rent..... So we had to address that and that there will be a rent raise come May.  That made him push back a little as to what it should be raised to..but we met in the middle... 

He is a very clean and respectable tenant who has a great history.  His unit is spotless.  And we seem to get along just fine.  I didn't want to chase him off because why loose a good tenant?  So I raised it from 575 to 675 which kept him 75 bucks below market rent which I think for now is fair.. I explained that in August, rent will increase again but you will be given notification.  He is month to month... 

I never had to sign a lease with a tenant and I was nervous about being so demanding because he has been there for 7 years and is a great tenant... My lease is thorough which is good but it made me uncomfortable to come in a turn his world around because the last landlord was very lenient and kind of ready to retire and quit being a landlord... 

The tenant also hasn't had anyone living in the lower unit for 2 years... So I think he feels like the place is his but I guess this is where i have to become strong and stand by the lease if something pops up... 

I just hope I played my cards right... 

Landlording here I come.... lol

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29
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Jake Oreskovich
  • Rental Property Investor
  • Cleveland
16
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29
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Jake Oreskovich
  • Rental Property Investor
  • Cleveland
Replied

Hey Cody,

What a great post! You are correct, super awkward. I bought a duplex when I was about 22 years old that was fully occupied. The tenants in both units were relatives of the seller and their rent was about $400 below market rents in each unit! Talk about awkward. They were on month to month and I had to let them know that I was going to raise rents all the way up to market value in two months.

One of them moved out and one of them stayed for a year. Make VERY sure that you don't let emotion get in the way of business! Don't forget, you are the one who has the money on the line and while it's all fine and dandy to be as nice as possible, in the end you are a landlord and you must do what's best for your business.

You make the rules and the tenants either obey the rules or move out. Remember, there's no shortage of tenants. Very worst case he tells you he's moving out, then you find a new tenant and get the rents you need and set the expectations right off the bat. Also, be friendly with your tenants but DO NOT become their FRIEND because then it does become difficult when decisions must be made.

Hope this helps! I would like to hear how everything goes, please keep me posted!

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