Keep existing tenants on new house hack?

[Bryce Renicker]

Hey Biggerpockets community,

I purchased my first live in 2-flat in Chicago this past December and became a first time landlord. I live in one unit and the other unit was already occupied, with that tenants lease expiring June 2022. I am debating whether I should keep the existing tenants and renew their lease, or go ahead and screen and find new tenants once theirs expires. 

So far, they have paid rent each month within Chicago's allowed 5 day grace period of rent due date, and have not given me any trouble other than some loud music from time to time. One of the tenants let it slip that she was happy the previous owner took them as tenants because they had a hard time finding a rental due to their poor credit score. 

Im thinking of renewing with a month to month lease option as a way to give me a bit more flexibility. Any advice would be great! Thank you 

[Nathan Gesner]

Quote from @Bryce Renicker:

Hey Biggerpockets community,

I purchased my first live in 2-flat in Chicago this past December and became a first time landlord. I live in one unit and the other unit was already occupied, with that tenants lease expiring June 2022. I am debating whether I should keep the existing tenants and renew their lease, or go ahead and screen and find new tenants once theirs expires. 

So far, they have paid rent each month within Chicago's allowed 5 day grace period of rent due date, and have not given me any trouble other than some loud music from time to time. One of the tenants let it slip that she was happy the previous owner took them as tenants because they had a hard time finding a rental due to their poor credit score. 

Im thinking of renewing with a month to month lease option as a way to give me a bit more flexibility. Any advice would be great! Thank you 

Are they at market rate? I'm guessing they're low if the previous manager didn't screen well. If they are at market and have been good, then I would consider keeping them for now. If they show any red flags, or are below market, then I would lean towards non-renewal.