Advice on dealing with inherited tenants

[Ellen Feiss]

Hi Bigger Pockets,

I just bought a three family house in providence rhode island. It is owner occupied and I will be moving into the vacant unit. The building has 2 leases up in April 2025 for way below market rent (the difference is 600-1000 per month). I also plan to ask one tenant to vacate as I will be moving into their unit. I'm looking for any / all advice for best practices around how and when to inform tenants about the rental increase/request to vacate. On the one hand, I know they are all anxious about what the new terms will be - perhaps I should tell them ASAP (I move in at the end of this month and have a lease/occupancy agreement with the owner until then). So I could tell them now and they could take some of their ire out on the outgoing landlord. Or I could move in, get to know them a bit, and then tell them a month or so in (giving them all 8 months to plan for the changes). I worry the tenant I'm asking to vacate will be unpleasant. They are the kind of tenant who might try to challenge you. In that case it may be better to be mum until I must tell them (90 days before their lease ends I believe). At the same time it would be great if the tenant I'll ask to vacate moved out earlier.

My plan is to have face to face conversations about this and follow up with certified mail / official paperwork.

Thanks for any / all advice

[Ty Coutts]

Hey Ellen,

Congratulations on your new property in Providence! Firstly, transparency is key. It's generally advisable to inform tenants about rental increases or changes to lease terms as soon as practical. Since you're moving in soon, having face-to-face conversations can establish a personal connection and show your commitment to fair and clear communication. 

For tenants with leases expiring in April 2025, consider discussing the rental increase sooner rather than later. Providing them with ample notice allows them time to plan and adjust financially. You can outline the reasons for the adjustment, such as market rates or property improvements, and emphasize your willingness to work with them during the transition.

Regarding the tenant you plan to ask to vacate, approaching this conversation tactfully is crucial. If you anticipate challenges, it might be strategic to wait until closer to the 90-day notice period required by law. This approach minimizes potential friction while still providing sufficient time for them to make arrangements.

Using certified mail for official notices ensures legal compliance and provides a paper trail for documentation purposes. Hope this helps! Feel free to reach out with any other questions!