My first 4plex in Rhode Island...now what?
Hi all,
So I just purchased my first buy and hold down in Pawtucket, RI. It's no taj mahal, but needs no major updates/upgrades. It came with 4 long term tenants (6 years to 19(!!!) years) on the property. All have paid on time (some bi-weekly/some 2 days late) but never had issues with a need for eviction, and are all tenant at will.
It's turning a profit, and I'm very happy with my purchase, but the average rent is 850, with the average rent for a 2 bed 1 bath in that area according to rentometer is 1250. I spoke with some locals, and they said 1150 is a bit more accurate. None of the properties have really been upgraded in a while, but with long term tenants I am concerned with raising the rent, but the former owner had not raised the rent in years.
I'm looking to increase the rent to 900 in february. In a perfect world, I'd look to have them sign 12 month leases in August/September so if they move out it would be easier to increase rent. With that lease agreement I would be looking to increase rent again. I understand this would certainly rock the boat.
I have a few questions. I'm going to paint the interior hallways for sure, but I want to make some other improvements to justify raising the rent. I plan on painting the interior hallways and I originally wanted to replace the carpets with LVP, but I may wait until spring and get one last use out of the carpets. I was thinking of maybe updating a bathroom or a kitchen here and there, but interrupting the tenants could cause issues. In a perfect world, one would leave and I could fully update a unit, and rent it at a higher rate. I certainly don't want to rock the boat with the current tenants, but what other updates/upgrades have you guys done that had minimal impact on the tenant, but added equity to the property?
Any other ideas are welcome, it's my first time as a landlord and my ears are wide open to any and all suggestions.
Thanks!
Mark