30 Day Notice of Non-Renewal

[Michael Craig]

Hi BP,

I have an inherited tenant who's rent is critically under market value - I can get roughly 25% more without investing a dime in the unit (already received offers from future renters). 

I closed on the property in February and the tenant's lease expires mid-June of 2019. I will not be renewing this tenants lease because in my experience, all inherited tenants in the past have caused me problems. Is this too harsh of a reason? After-all I own the property and live in the unit directly under it.

[Cassi Justiz]

Is this tenant currently causing you problems? Are they keeping the unit in good condition and all of the other stuff that you would want in your ideal tenant?

I personally wouldn't instantly not renew the lease just because they are an inherited tenant. I would base it on whether they are meeting your standards or not. If they are proving themselves to be good tenants, then I would give them an option to renew their lease at market rates.