Should I ask for rent increase in purchase contract?

3 Replies

I'm wondering if you all could give me some pro's and cons:

I'm wondering if it's a good idea to asking for a rent increase as part of my purchase contract with a tenant who is month to month and the seller has a management company taking care of property.

My thinking is, if I were the seller and they asked this of me instead of asking for a lower purchase price I wouldn't mind. It also might be a great way to know if that tenant will take the increase and at the same time if they don't I'll have a vacant unit ready at close that needs rehab. Win win? Turnoff to seller?

Thanks!

Doesn't hurt to ask.  As long as the Tenant is on a month to month, and proper notice is given, a rental rate increase would be an acceptable ask.

Just verify that the appropriate notice period still falls within your escrow.  It may be that 60 days is required to notice tenants of an increase in rental rate.  So, just be aware.

@Sean Larson . What's the legal timeframe allowed for informing the tenant? I'm sure there is a 30 or 60 day buffer.  I think you should first have the property in your possession before you can do that. 

(919) 434-3132

I was definitely planning on doing it legally-30 days notice-so I'd have higher rents right around closing.

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