How to serve notice?

[Graeme Harris]

Hello, my wife and I are about to close on our first house hack and we’re about to inherit two renters that are on month to month leases that are way below market rent. We have to give a 30 day notice to one or both of them because we have to live in one of the units. One unit also needs some TLC. 
Two questions 

Do we evict one or both?
what’s the best way to give notice? and is it okay to give them more notice than 30 days? 

[Chris Seveney]

@Graeme Harris

Give notice to the tenants and any unknown occupants

We typically have an attorney handle this as it is more powerful when it comes from them in my opinion.

If you do it yourself I would either send certified mail or hand deliver it to them and acknowledge receipt

Your location may have specific rules on what is considered service

[Theresa Harris]

You don't evict people unless they are not paying rent, you simply give them notice with the legal amount of time required (which varies by area) to move out-more time is fine.  I would talk to both tenants and let them know that you will be moving into one of the units and rents will be going up to market value.  If they want to move, that is fine; if neither do, then the unit that needs TLC is the one you should move into-get that fixed up and when the other tenant moves, you move into that unit and rent out the one you fixed up.

[Nathan Gesner]

Quote from @Graeme Harris:

Eviction is for tenants that don't pay rent or have repeat violations of the lease. You are terminating their lease, which is done without court involvement.

I recommend you present the tenants with an introduction letter as soon as you close on the property. Introduce yourself as the new owner with contact information, instructions for paying rent, and anything else of importance. In your case, I would also include that you are giving them 30 days notice to vacate the unit so you can occupy. That's it. Don't make excuses or apologize or try to soften the blow to protect their feelings. It's just business.

Definitely remove both of them, then place a tenant of your own choosing at market rate under your lease.

[Gregory Wilson]

I think I would write both of them one letter. They will know each other already. Say that you need to move in to one unit and raise the rent on the other. Tell them how much it will be. Then say, "do either one of you want to stay at the new rent amount? If so, let me know. If both of you would like to stay, I'll flip a coin."

That way you won't have to fill the vacant apartment.

I believe in transparency with tenants.

[Jill F.]

When I buy properties with way under market tenants, I have a "bad news bear" letter that I send out which introduces us, explains the current situation and tells tenants what the current market rates are, and for tenants not under leases, when and how much the rent will increase. It explains that tenants under lease will adjust at the end of the lease term. I also include rentometer reports showing area rents for the last 6-12 months and a list of other properties I have for rent at lower price points. Usually I'll give undermarket tenants 90 days notice and offer a month's rent in moving assistance if under rent people exit in the first two months (though Ohio does not require it). 

[Wale Lawal]

@Graeme Harris

Congratulations on your upcoming house hack!

When you get tenants paying low rent on month-to-month deals, you face choices. To decide whether to evict one or both tenants, consider factors like immediate need for living space, rental income, and renovation plans. Legal requirements for giving notice include checking local and state laws, providing written notice, clear communication, specifying the move-out date, offering assistance, offering more than 30 days notice as a goodwill gesture, and providing 45-60 days notice for a smooth transition, reducing stress and potential conflict.

Good luck!