Hello all. I was hoping for some advice from more experienced landlords to get rid of long term, inherited tenants.
I purchased a house for $61,000 in the path of progress. The area is changing very quickly. New houses are being built all around. It’s very close to the city. Timing could not have been better. I renovated the upstairs unit and signed a lease on the first day it was listed for $1200 per month. It’s a two bedroom, one bath.
The downstairs unit needs about $5,000 to $8000 to bump up the rents to $1,200. Same layout as the upstairs unit That was just rented. The tenants that are living in there, whom I inherited, have been living there for 12 years. They are only paying $450 per month. Once I renovate that unit, I should be bringing in anywhere from $2200 to $2400 per month for both units with $95,000 into it.
Any advice would be helpful on the best way to Handle the situation. Is the best way to give them a 30 to 60 day notice? Better to tell them I’m going to renovate and need them to leave? Raise the rent so high they decide to leave on their own?
They are on a month to month and have been for years. Thanks!!!!
give them appropriate notice, according to state laws, that you are raising rent to market, and if they don't want to pay market they will have to move. you may even consider giving them an extra 30 days if you wanna be mr. nice guy.
be prepared for some hard feelings, as after 12 years they will feel as though they have a right to be there. the truth is they don't, but in the interest of getting them out without a fight, you may consider giving them a "reward" for being such long term tenants, such as security deposit in cash the day they move out, or offer to pay for a moving truck, or something like that, but I would only offer if you expect getting them out to be a battle, since it would be cheaper then eviction.
Good advice, thanks!
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