Rental Property With Tenants

[Tim Ger]

Hello Friends,

I am about to go to contract on my first investment property. I am very excited about deal. One cause for concern is that it is a duplex with tenants in the house. I have received a copy of the leases and all looks good. From what I have heard the tenents seem to be good. One tenant has been there for 4 years and the other for 15 years. The problem is that their rents are way under valued. The tenant who has been there for 15 years pays 1300 and should be paying 2000. The other tenant pays 1100 and should be paying at least 1600. Leases run out 4 months after I acquire property. How should I handle this?

I am afraid the woman who has been there for 15 years may consider it "Her House" and will refuse to move unless I evict. Should I raise rents slowly and try to keep them? Should I just not renew leases? Should I see if they can pay the new rents? What else should I be concerned about with inheriting tenants? I dont want to start with 2 tenants not paying rent.