Tenants - Inheriting / Rent Increase

[Mary Pietronuto]

I am purchasing a 2 family home in CT - both units are currently occupied with tenants on month to month leases. 

I intend to move into one unit within 60 days of closing and renting out the other unit (highly considering keeping current tenants but requiring them to sign an Annual lease).

I have two areas I'd appreciate some input on since this is my firs go!

1) In the unit that is currently occupied that I intend to live in - I would like to give the tenants plenty of notice, offering them to continue a month to month lease at their current rate with the intention to vacate within 60 days. ( I have some flexibility with my move in date).  Is 60 days enough notice or should I extend this? Is this the best way to handle this?

2) In second unit, which is occupied, I would like to keep these tenants.  They have lived there for 5 years, keep the property in great condition, never missed a payment (per current owner) and I know they have a strong desire to stay.  However, their rent is EXTREMELY below market.  It has not been increased in 5 years and does not reflect the current rental market in the area.  I'm thinking my approach will be the following:  Let them know that I would like to keep them as tenants and note that their rent is below market.  Let them know how munch I would rent the unit for if I were to put it on the market and then offer them monthly rent $200-300/ below that.  Note this will probably be about a $500-600/month increase from their current monthly rent.  I understand that they may not be able to renew at this rate, but I want to try to give them a break while also making the numbers work on my end. If they can't afford it, I will go to market with the unit.

Does this seem fair and reasonable? Any suggestions or input welcome