Closing a sale with tenants already in place

[Robert F.]

I will be closing on my first duplex at the end of this month. 

Tenants are in both units. Rents are too low. I plan on raising rent for upstairs unit from 750-1000. I've done my research and feel that this is slightly below market price.

I plan to move into downstairs unit once I can get current tenants out. 

Both leases are at the end of their term. The seller/ current landlord has already given notice that they will be approached with new leases upon sale of the property.  However, both leases say they require 90 days notice- see below

Again, I’d like to get the downstairs tenants out asap and raise the rent upstairs asap as well. 

I’ve gotten some opinions already about the 90 days notice , but I am curious to hear what the big pockets experts think. Do I have to give downstairs tenants 90 days to leave and upstairs tenants 90 days at their old rate until I propose an increase?

[Nathan Gesner]

Have the current owner notify them that you intend to occupy the unit and want them out. Your mortgage lender may require you to occupy within a shorter time frame, which may be legal justification for giving a shorter notice. For example, if your lender requires you to occupy within 60 days of closing, then I think you are legally justified for giving the tenant a 30-day notice.

As for the other tenant, I don't recommend keeping them and hitting them with a large increase. They often can't afford it. Even if they can afford it, they may choose to leave. Even if they choose to stay, it can create friction because you're the mean landlord that just increased their living expenses. Any time rent is going to increase more than 15-20%, I recommend you move that tenant out, spruce the place up, and rent it at market rate to a tenant of your choosing.