How to go about raising rent and either charging for additional space used

[Tom Server]

Hello BP, I'm currently in the process of purchasing a triplex. Offer accepted.

Doing the numbers my net cash flow should be between $500- $700 a month with the current low rents.

Im in New Jersey and the current rents are really low, but the area isn't the greatest.

Current rents are

2br/1 bath-$1050

1br/1 bath-$ 950 (section 8)

back apartment-

2br/1 above a 3 car garage $1050

The 3 car garage is also being used for storage, I believe from all 3 tenants

All tenants have been there for a while, all over 5 years and lease right now are month to month

I was looking at the Hud websites for the area and the FMV rent for a 2br 1 bath is $1471 and for a 1br 1bad $1140

Any suggestions on what to do.. I also would like to charge for the 3 car garage use, or have them remove their stuff, so i could store my personal stuff in there and save me 200 dollars a month for my current storage unit.

Thanks

[Nathan Gesner]

If there is a written lease agreement, then you have to stick with it.

I suspect there's no written lease, or it's expired. If that's the case, you can just give them a 30-day notice of the rent increase and they can accept it or decide to move out.

I highly recommend you read "The Book On Managing Rental Properties" by Brandon Turner, or "Every Landlord's Legal Guide" by NOLO and start figuring out how to manage your investment before it eats your lunch.