How to remove a tenant without a lease?

Question

Just signed the contract for a duplex that has one vacancy and one tenant couple on the other side without a lease. We are going to BRRRR this property but need to get the other tenants out to be able to rent it out at a higher rate. They have been paying $1750 for 13 years but from the comps we believe we can get 3k-4k after updating both units.

We are trying to figure out the way to removing them and getting new tenants in.

Should we send them an email or letter stating in 60 days we will be raising the rent, and they can either sign the new lease or move out?

Would love to hear the best protocol for this matter.

Michael Plante · Answer

I would have made the removal of the tenant by the seller as a part of the purchase offer

what to do now I don’t know

Kevin Van Witt · Answer

@Bjorn Ahlblad thank you Bjorn. This was very helpful. After looking into it more I think we can first send them a notice of rent increase and offer a new lease if they accept this, if they reject it we will send a notice of lease termination.

Bjorn Ahlblad · Answer

@Kevin Van Witt There is always a lease even if it is not a written lease. Depending on your jurisdiction it will be a 30 or 60 notice of non renewal. In the meantime meet them and tell them how to pay maybe hand the the notice then and there. You could offer to have them complete an application and see if they qualify and want to sign your lease. Maybe they know the going rate and will be wanting to stay-it happens. All the best!