Purchasing my first duplex with a tenant

3 Replies

Hi everyone!

I’m purchasing my first duplex and inheriting what appears to seem like reliable tenants. This couple has lived on the property for 8 years. They rent a 2/2 with Brand new kitchen and bath for $800 in Audubon, NJ. Apartment can be rented for 1k. Should I raise the rent? If so, is $900 too much?

Hi Rosaria, 

I'm in Audubon too :). A 2 bed around here now averages around $1,000+ from what I can see. If the tenants are reliable, it's up to you. Give them forewarning but a 2 bedroom for $800 is low for the area, especially if it's upgraded. 

Kev 

Rosario,

I suggest talking to an attorney regarding the rent increase.  I've been taught that 3 to 5% is "normal".  I've also been taught that if a landlord increases the rent too much,  the tenant can file a complaint for constructive eviction (aka self-help eviction) which is illegal.  Maybe you can come to a viable compromise with the tenants, but be sure to cover yourself legally.  This is not legal advice, I'm a Realtor and landlord. 

Also, be sure their income qualifies them for the new rent amount.

Good luck!

Kelly "Triplex Lady" Rathbone 

HomeSmart Realty