Sticky Situation - Tenant Paying Same Rent For 3 Years
I am looking at a multi unit complex. Just received the rent rolls and looks like about 3 out of the 15 tenants have been there over 7 years and have been paying about 100 below everyone else for about 3 years. Well below what the rent market allows. Anyone ever dealt with this in the past and have any suggestions dealing with these tenants after purchase.
Hi mrlee,
When you buy the property, you still have to uphold any current leases that are in place. If there are no lease, month to month leases, or they expire soon then you are in good shape.
I would send the tenats who are not in a lease a notice that in 30 days the rent rate will be increases to $X. If they do not intend to stay, remind them that they must give you a 30 day notice to vacate.
On that much of an increase, many of your tenants may decide to relocate. so you may want to send out a few letter at a time until you get a feel for the situation. It would be a bad deal if you have this great new property . . . That is Vacant, right?
Best of Success!
BAMZ
Up the rent!
Simple as that! Are you buying the property for cash flow or helping those who like taking advatnge of good deals (on your back)!
You mentioned that they have been there seven years that is quite a long time. I would first check to see if they were good renters who don't cause alot of problems if they are excellent.
I wouldn't rock the boat to much you could up the rent a little but not to much. If they are bad renters go ahead and jack the rent up.
I agree, good renters can be far more valuable in the long run than the extra $$ per month. Find out whose worth keeping and maybe offer them only slight increases as opposed to others. Justification would be rental incentives for good behavior.
I concur. Z
I agree. You most people with accept $10 or $15 increase beyond that & they're out looking for somewhere new to live.
I'm not the kind of landlord that likes to make visits or hire someone to handle maintenance issues, so for me I'd want to check how often they have maintenance claims versus the average of the other apartments.
If the instance is high, up the rent. If it's low, let them stay.
But that's just me, reliable, low-maintenance tenets are a goldmine in TIME SAVED.
I would at least start the nusance increases $15-$20 bucks.
I would also schedule maintenance visits for the units so you can see the tenants in action.