1st Time Owner - New Leases & Non Pmt

[Danielle Cage]

I closed on a 4 unit on 3/01/24 and sure could use some help.

I appreciate any responses to anything below!

- 3 units are occupied by seller’s close family 

- All units are on month to month basis

- All units are significantly under market rent

- 1 unit pays on the 15th of the month

- 1 unit has not yet paid for Match 1st even though my information has been provided to them twice

- I have no applications or old leases

1. How do I handle the unit who hasn’t paid? I want to set a firm precedent since they’re all related

2. Would you get retro applications?

3. I want all payments due on the 1st of the month. How do I address the unit paying mid month?

4. I want to make rent increases begin May 1… do I make 1st month of lease begin April 1 at old rate or begin leases at May 1 with new rate? How do I communicate rent increases since I need 30 days (but prefer giving more time)

5. Someone recommended not renewing to the family members as it can become an issue. Any thoughts on this?

Thanks!

[Nathan Gesner]

Quote from @Danielle Cage:

You are going to kill yourself by trying to "fix" the current situation.

The best solution? Give all the tenants notice of termination. Move them out, clean the units up, and place your own tenants at market rate.

Any other method is going to create a ton of work and stress, and it probably won't work out well for you in the end.