I have recently bought a small multifamily with tenants in place, on a month-to-month basis. The previous owner did not ask the tenants to provide him security deposits.
I have decided to raise rents in 4%-5% and sign the tenants on annual lease agreements. One tenant refused to sign the new agreement, saying it's too expensive for him. The problem is that his unit is a mess. He made a lot of damage that would probably cost me a few thousand dollars to repair in case I decide to find a new tenant.
What would you recommend to do?
Get rid of them rehab raise the rent accordingly.
The longer he is there the more damage he will cause.
The faster he is gone the faster it can be refinished and rented .
I agree with the advice already given, get rid of him immediately and move forward to prep for a new tennat.
Also agree you should never put inherited tenants on a term lease. Offer them a M2M and leave them that way permanently if they work out, non renew if they do not work out.
My opinion M2M is the only lease to offer all tennats.
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