Lease Renewal and Rent Increase
Closed on our MFH in Chelsea, MA this past Monday. We have two sets of inherited tenants and will be occupying this property. The current tenant's leases end on 8/31/21.
Unit 1 - 3 bedroom
- currently under market at $1850
- we intend to increase rent to $2100 (still under market, tenants were verbally told to expect this by the seller)
We do not want to renew this to a yearly lease because we would like to/potentially need to get into this unit to update sooner. Inspector found some water damage and leak from bathtub drain etc that we don't want to have to wait a year to address.
Unit 2 - 4 bedroom
- tenant would like to move into Unit 3, also a 4 bedroom -- newly updated. Current rent in unit 2 is $2050
- Rent for Unit 3 will be $2500, still below market.
- Tenant does not speak English so communication is not straight forward. Tenant has stated they would find roommates.
We would like to move into/rehab unit 2 at the end of that lease. Then repeat the process in Unit 1 in a few months --we would like to be transparent about that to the current tenants.
Questions:
I plan to provide Unit 1 with a notice that rent will increase and following that, a new month to month lease. What is the best way to communicate this? (Everything I've attempted thus far feels clumsy.) They have been there 6yrs, would you re-qualify these tenants?
We are going to provide tenant of Unit 2 with rental applications to provide potential roommates so we can screen them. It is unclear if this tenant has e-mail access. Which is holding up proceeding with a fully electronic payment and lease situation. How would you proceed to make this easier?
Lots of moving parts here, hoping someone experienced can help me to simplify. Thanks