Being A New Landlord with undermarket value Rent
Good afternoon everyone!
I just closed on a three family in East Orange NJ and acquired the house with tenants already on the premise . I used the VA Loan, so I occupy one of the units while my tenants occupy the other two.
The previous seller had the rents way under market value . Two 3 Bedroom apartments for 1,000 per month and a 1 bedroom for 750 per month. Each tenant is on a month to month lease . I researched the rules for East Orange and I can only increase it by 7 percent . Should I terminate the least in 30 days or could I give them the option to pay 1400 for the three bedrooms?
Not sure about the best way to you about this decision !
Thank you for the help in advance ,
Chris