Real Estate Professional · Upper Marlboro, MD · Member since 2016 · 4 posts · 0 votes
Hello,
I am looking to purchase my first property. It is a 3-unit property, fully rented with month-to-month tenants (all paying below market rent and one is behind on rent). The property is located in Prince George's County, Maryland. I would like to remove the tenants, renovate and charge market rent. Should I undertake this take for my first property? I know I have to give the tenants 60-days notice to vacate but if they do not leave do I have to go through a costly court process? Please Help!
- Newbie Who Doesn't Want to Lose Her Shirt on First Property
If you are really going to settle on this property - you could ask the owner to give them a 60 day notice of rent increase - send this notice effect September 1st, (don't miss this mailing) raise the rent to the number you want - if the tenant agrees to accept the rent increase - great - if not - you would be in a position to eviction them based on the non-payment of the increase or they will just move - you may want to say in that increase rent notice that there are plans to improve their living conditions, supply new appliances and whatever you plan to do.
Do this will help get what you want without vacancies and still have a tenant who will be happy to comply to the increase.
@Amber Gray, yes, this is a good strategy. Obviously, start with the person who is behind on rent. You may want to consider offering "cash for keys." Renovate that unit 1st and the outside as well.
You can then have some conversations with the other tenants. If they're good tenants, you may not want to run them off. You can offer to move them into the newly renovated unit at the increased price and with a standard lease.
OR you can tell them that the rent is going up $50 every 6 months until it hits market and that you will be requiring a standard lease going forward.
If they see the condition improving, they may well be happy to pay a bit more OR decide to move on their own.
It won't necessarily be an easy process, but you have a lot of options. As long as you've done your due diligence and underwriting, you should be fine.
If you are really going to settle on this property - you could ask the owner to give them a 60 day notice of rent increase - send this notice effect September 1st, (don't miss this mailing) raise the rent to the number you want - if the tenant agrees to accept the rent increase - great - if not - you would be in a position to eviction them based on the non-payment of the increase or they will just move - you may want to say in that increase rent notice that there are plans to improve their living conditions, supply new appliances and whatever you plan to do.
Do this will help get what you want without vacancies and still have a tenant who will be happy to comply to the increase.