Updated almost 5 years ago on . Most recent reply
Getting equity out of a propert through rehab and raising rents
Currently own a fully occupied triplex in the western mass area. All tenants are paying under market rents. With the appropriate rehab I can raise the monthly rent roll about 700 dollars all together. However I am not sure if these tenants can afford it. How should I go about making these renovations and putting these units back on the market. Looking to get equity out of the property by increase the net income.
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Hey @Trey Prince that's a pretty significant chunk of money, you're talking a few grand by the end of the year. Does the current condition of the unit warrant the increases in rent?
What we've done in the past is offer the tenants the apartment at a higher $ once their lease is up. It has to be high enough of an increase that either makes them want to leave, or makes you close enough to where you want to be so that you don't have to do the renovations right away.
Once the unit is renovated you're good to go in and take new photos and repeat the listing process.
I'm in Westfield fairly often (have family in the area). Happy to grab a coffee with you sometime if you're interested. Best of luck - if you have any questions for me about Westfield or Western MA just tag me in your response.