Just Bought My First Duplex (House-Hack), Now What?

[Trent Ford]

Hi BP!
I just bought my first property! I am super excited, and also flooded with questions! Basically now is the point where all the theory becomes reality, and I want any and all advice you may have for a first time landlord.

The property is a recently remodeled duplex in a suburb of Dallas, TX, with a tenant currently in one of the units. The tenant has been month to month, as the seller didn't want the buyer to inherit a long lease. From the state of the unit, the tenant seems to be very clean and has taken good care of the place. 

However, the rent that the tenant is paying is a few hundred dollars less per month than what I think the unit could/should generate. How should I handle possibly raising rent for a current tenant? The tenant also has 2 dogs. I don't guess I can charge a pet deposit, as she's already in the unit?

Any other advice or words of wisdom you might have for a new landlord would be much appreciated! 

Thanks in Advance!

[Bart H.]

Originally posted by @Trent Ford:

Hi BP!
I just bought my first property! I am super excited, and also flooded with questions! Basically now is the point where all the theory becomes reality, and I want any and all advice you may have for a first time landlord.

The property is a recently remodeled duplex in a suburb of Dallas, TX, with a tenant currently in one of the units. The tenant has been month to month, as the seller didn't want the buyer to inherit a long lease. From the state of the unit, the tenant seems to be very clean and has taken good care of the place. 

However, the rent that the tenant is paying is a few hundred dollars less per month than what I think the unit could/should generate. How should I handle possibly raising rent for a current tenant? The tenant also has 2 dogs. I don't guess I can charge a pet deposit, as she's already in the unit?

Any other advice or words of wisdom you might have for a new landlord would be much appreciated! 

Thanks in Advance!

 Congrats on the duplex.

I would recommend getting them under a lease and offer a new higher rent if need be.  Although we generally are reluctant to renew existing tenants, there is higher risk than going through your own criteria.

IF you have some rehab or upgrades you were planning on doing, you could probably offer to do those when you plan on raising the rent.

I think I would just get an increase in rent for the dog vs going thru the effort to explain both a rent increase, a new lease AND a pet security deposit.  I think you will find it easier to deal with pet deposits/pet rent with brand new tenants.  Especially if the property is in good shape.

I would recommend doing it soon, because its much easier to get tenants in this area in the spring or summer than in the fall or winter.

We typically raise the rent every time we sign a new lease, if we have great tenants, we do small increases.  If we rent to a new tenant we start from scratch.