Inherited Tenant with No Lease

[Bill Graham]

I recently purchased a Triplex from my neighbor. He is 75 years old and ran his building "old school". You know, week to week with no lease and a 1 week security deposit.

Of the three tenants he had in there, one left when he heard of the ownership change. One tenant has been there for 20 years, and has not made one payment since I took ownership. He is currently in eviction process. We should get a court date this week.

The only tenant left actually has been paying on time. The rent is at least $40 below market. The problem I have with them is they refuse to fill out an application and they are refusing to sign my lease. 

I have issued them a 30 day correct or quit eviction, but not only will I have to fight a paying tenant in court, I will have a completely empty building.

We are nearing completion of renovations on the first unit. So, I was thinking of just riding it out until I get a fresh tenant, then raise their rent considerably until they move or sign the lease.

Thoughts...