Taking on existing tenants with new purchase
1 Reply
Benjamin E.
Investor from Chicago, Illinois
posted over 3 years ago
Hi all. About to put an offer in on a three flat. Issue is that the existing tenants have more than two people per legal bedroom living in the property. Three bedroom units, with between 6-9 people in each unit. Looking for thoughts on how to handle this if I purchase the property, short of asking them to leave. They all have been there for 10+ years, and the rents are only at $900. They can be easily raised to $1200 or so without even doing any repairs. I would at a minimum raise the rents and perhaps offer them to stay. Anyone who doesn't wish to stay could leave and I would update the unit. Thoughts? Any way to keep them? Also, keep in mind that winter is coming, making it harder to get someone out.
Eddie Memphis
Investor from Englewood, Colorado
replied over 3 years ago
It all depends on the current lease.