Great Deal with Tenant With No Lease
Greetings all- I've just found a really good deal on a duplex that has two tenants in place. One is on a month-to-month lease, the other has no lease whatsoever, and has lived there for 25 years.
Realtor says that both are current on rent amid the COVID19 pandemic. Rents are probably $150 under market rent on both sides.
My inclination is to work with people who have a good payment history and move rent up gradually, but I'd like to get the long-term renter into a legal situation on paper. Any success stories on this front? Any "don't do this" advice? All insights welcome.
Most Popular Reply
Mechanically, this is super easy. You simply enact a policy that month-to-month leases are $100 more than a normal 12 month lease. "Wouldn't you rather have a 12-month lease at a lower monthly payment?"
Of course nobody likes their rent increased. The delicate balance, if you want to keep these residents, is how fast do you raise the rent.