Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

25
Posts
4
Votes
Ari Archer
  • Investor
  • Oakland, CA
4
Votes |
25
Posts

Taking over 4 tenants – best strategy for getting up to mkt rent?

Ari Archer
  • Investor
  • Oakland, CA
Posted

Hi–

I just bought my first rental property – a 4plex of 1/1s in the Vallejo, CA area. I'm inheriting 4 tenants, 3 of whom are month-to-month. I'm looking for the best way to get the 3 month-to-month tenants up to reasonable rents. There is no rent control. Should I offer them financial incentive to sign year leases? Should I get them on my leases instead of the previous landlord's?

Some background info:

  • unit 1: $1150/mo – upper unit with view, some recent renovations. on year-long lease ending 11/17.
  • unit 2: $775/mo – upper unit with view. month-to-month, tenant since 9/10.
  • unit 3: $800/mo – lower unit. month-to-month, tenant since 7/14.
  • unit 4: $775/mo – lower unit. month-to-month, tenant since 5/11.

unit 1 i'm happy with.

unit 2 looks like the biggest opportunity for raising rent. in it's current condition, it looks like i could get 875-950 for it. after some updating, i could get 1100-1350 for it.

units 3 and 4 could probably max out at 850. after improvements i could get ~1k/unit.

if they are good tenants i would like them to stay. i certainly appreciate the longevity. any advice would be greatly appreciated.

Most Popular Reply

User Stats

2,667
Posts
1,761
Votes
Deanna McCormick
  • Minneapolis, MN
1,761
Votes |
2,667
Posts
Deanna McCormick
  • Minneapolis, MN
Replied

Unit 2 raise to $895.00  in 6 months raise to 950.00

Unit 3 raise to 875.00

Unit 4 raise to 875.00 

3 & 4 in 6 mo raise another 50 to 75 bucks,without any improvements unless vacated. 

The first to go rehab and up to top market rate.

Keep them all on month to month. once you know your tenant base.. you have more control and then if you want to change lease terms you could consider it.  but for now I'd keep them all on month to month.

My family's had rentals over 50 years and now are mine,  we only have done month to month, at the most I would do is guarantee rent rate for 12 months at move in but month to month is way to train and keep your tenants trained. You think you have security with a year lease but in reality people will do what they want and leave, move, fight your terms, and in the end a month to month term with 60 day preferred notice is way to go....

Loading replies...