I'm looking for a 'fixer upper' to fix and rent. I recently saw one that has potential, however, it is in really bad shape and has people living in it. From the pictures there is trash everywhere and is really, really dirty. Who knows what else I'll find when I actually visit it.
All of the tenants have house choice vouchers and their realtor said the rent hasn't been raised in years. Does anyone know the rules about acquiring property with tenants living in it and how to raise rent for people who receive government checks to pay their rent? I'm assuming that I can't just kick them out once I acquire the property, and I wonder if there are rules to raising rent. I would want to eventually do renovations in there and raise rent and frankly would like my own tenants of my choosing.
I would ask the REALTOR how long is left on the lease. It being all dirty as you describe it, you should use it to your advantage. If its in the location you want and really want it go for it. Submit an offer based on comps and condition on the house, gives you an opportunity to come in really low. During your due diligence period I would definitely request to see the current lease and what terms are on there. Your correct you cannot kick them out if they have a valid lease, but maybe its a month to month :) I know that doesn't really answer your question as to can you raise the rent on them. But you definitely don't want to inherit tenants if at all possible. Hope that helps @Jennifer Fernéz
Thanks @Joe Abughazaleh !