Raising rents in an occupied property

[Patrick Zepeda]

Hi all,

I am looking at purchasing a quadplex where current rents are $500 - $600 per unit and the market rents are about ~$800 per unit. How do you raise rents to market rates with them still occupying the units? My initial thought was to renegotiate the rate at the end of the lease depending on the quality of the renter, or have them vacate, rehab and rent for more. The other caviat here is that there is tenants paying month-to-month. How would you best approach this situation?

Many thanks!