Inheriting Month to Month Renters
Hi Bigger Pockets community!
I'm going to be inheriting month to month renters. My goal is to rehab each unit and charge more per rent. They are currently paying $75 below market price for that same type of unit/location/unit condition. I will be moving into one of the units (FHA loan) and for the rest I'm thinking of keeping them month to month and increasing the rent by $50 initially. I don't want to have the tenants sign any contracts as my goal would be to work on each unit (starting with the one I move into) and rehab each unit one by one. I'd like my property to stand out from what's currently available in that area and have it more upscale. The demand for rent is increasing in my area and I think after the rehab I can have it go for $325 higher to what my renters are currently paying. I understand that with this strategy I will end up looking for new renters.
I appreciate any feedback from you all but specifically would like to know the following:
1. If I'd like to increase rent and keep it month to month with my inherited renters, do I need to have them sign a new contract, or is a notice for rent increase sufficient? (they don't have any contract with me currently, only with the previous landlord)
2. If the rent is month to month, could I (hypothetically) raise the rent every month? If so, would this be a good strategy to do when I'm ready to start working on the next unit and want that tenant to move out?
3. Any suggestions on how to do a full rehab when you have full occupancy?
Thank you everyone!