Inherited Tenant(s) Questions - Season and Dog....
Hi everyone,
We just closed on a triplex - and are of facing those same issues of inherited tenants... i.e. below market rents (by about $400,) questionable histories since we didn't vet them ourselves etc etc... but besides those 'normal' issues that comes w/ the existing tenants I have a question to gather some opinions on what you more seasoned investors might do...
We are in Oct, one tenant is month to month... I spoke w/ them last night and discovered that they have 2 adults and 3 children (ages 8, 4, and 1) and 2 dogs living in a 2bd 1 ba.... their existing lease didn't specify the dog breed... but she answered honestly and told me that one was an American Stafford pit bull (terrier)... i.e. it's not a dangerous dog, but comes from the pit bull blood line and insurance companies still ban it, so I told her this would be a problem. She, of course, is not going to get rid of the dog, and their renter's ins policy does not cover dog bites (the upstairs tenant also has a 1 y.o.). So she's asked how soon do they need to be out. We're coming into a rough season to try to find tenants (i.e. winter in WA State and the holidays)... what would you guys do in this situation?
Tenant #2 - these were the friends of the previous owner and they are below market by a little over $400 and have only left a security deposit of $250! (rents in this area for a 2bd 1 ba would be around $1500.). I'm going to speak to them tonight and obviously I need to raise their rent... do most people just do it a percentage at a time so as not to lose the tenant right off the bat? Obviously I'm concerned w/ the security deposit amount too... when I have them resign w/ us (their lease w/ the previous landlord expires 10/31 - i.e. this month anyway) can I include a bump to that security deposit?
We're also managing from a distance now - we used to the live in the area, so we did all of our placement and management ourselves... it's the first time I'm considering have a PM help us show the unit(s) and place the tenant... is it common to also ask them to help w/ coordinating any 'rent ready' activities that might be necessary - like new flooring and cleaners?
Phew - that's a long winded post - thanks for getting this far if you're still reading!!! Would really really appreciate any suggestions!!!