Hi. I purchased a duplex that has each unit rented. I would like to make some improvements to both sides and up the value of the property. The renovations would probably take a month and I need the property to be vacant to make those improvements.
Is there any way that I can legally end the current leases early? Or maybe someone has experience with possible 'rewarding' the tenants to leave early?
Otherwise I will continue with the same tenant(s) for almost another year until their lease simply expires and not renew it.
Thanks for your comments!
Michael, the best way to acquire a vacant property is to make it condition of the sale before you acquire it and let it be the seller's issue. Since that ship has sailed (and we've all been sailing so not casting any stones here), it's important to know that you cannot terminate their leases. So-o-o, with that off the table, you could offer "cash for keys" should they agreed to end their lease by a certain date with full return of their security deposit. But consider this first: What if one tenant agrees and the other doesn't? That very well could happen and you might not get the desired ROI by renovating half of the property.
I recommend that you look at what the demand is for rentals are what would be your new & improved price first - and then proceed. If tenant demand far outweighs inventory, I'd go for it. But if it doesn't, I would continue to gauge the market and not interfere with current cash flow until it improves.
Hope this helps. And, congrats on your new acquisition.
I would get the property, and jack the rents up as much as makes sense on the next lease renewal, put them at you would wit the repairs made, if they stay, great, if they leas, great. You always want some income, unless you are doing major work, there is no reason to have both vacant at the same time!