First Investment Duplex: Raise the rents or keep the same.
I was hoping others could weigh in on their opinion,
My wife and I are about to move into our first investment property which is a duplex. The renters on the other side have “ really moved in” with a lot of stuff and it looks like the previous owner didn’t do much upkeep, so when the current renters move out it will need some TLC. Currently, they are on a month-to-month lease which happens to be about $150 under market value. Here’s where my concerns lie; with Covid and moratoriums in place would you: 1) Let the tenants know you will not be renewing their lease and risk them not paying rent while being in the moratorium time, but now possibly able to renovate the other unit? 2) Raise the rents and let the current renters decide if they want to pay the new rent or move out (while still running the risk of renters not paying)? , 3) keep the current rent in place so as to not lose any rental income due to vacancy? or 4) another option my brain is not coming up with?
Looking for any guidance or thoughts to mull over in this situation,
Thanks,