Good morning BP members! I have a moral contemplation that I have been struggling with. We are looking at purchasing a side by side twinhome. Both sides have unfinished basements. In order to make the deal work, we will need to finish the basements and use them as rentable space. One side is vacant, so that is easy. The other side is what I have been struggling with. The tenant has lived there for over 22 years and it’s been his home. I am highly doubtful that he would want to rent the full finished space. He is a single man in his mid-sixties and his wife just passed away last year. We would have to kick him out and finish the basements in order to make the deal work. His current rent would double with the finished space.
I completely get that this is a business transaction and the smart thing to do would be to remove him to be able to finish the basements and get rent. However, I struggle with this greatly. This has been his home for the last 22 years. He has also been a great tenant. The current owner told me the tenant has called maybe 3 times in 22 years.
What would you do in this situation and your reasoning? Thank you so much for the help!
Tough situation to be in but you bought it for business not for charity. Since he has been there so long you maybe you can discount the rent for him and see if that is something he is okay with? Or finishing the basement in his unit and renting that out to another tenant?
I would let him know what your plans are with the property and be honest with him.
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