Acquired tenant, raising rent and trying to keep tenant..

[David Carr]

Hey BP,

I am closing on my first deal on Sept. 22nd (next week, woo!). With the deal (duplex), I am acquiring a tenant on the bottom floor. The tenant has been paying significantly lower rent for quite some time, approximately $200-300 below market price for a similar unit. I want to ideally keep the tenant and raise the rent to market. I was wondering if I could also do this with a single lease. Ideally, I would allow him to rent the first month at his current rate and then the following month I would increase him to market. This would give him 30+ days notice of the increase which I read was required in my state (New Jersey). I am also attaching a clause where if he provides 60 day notice, he can cancel his lease. He is currently on a month to month lease with the seller.

How would you fellow landlords solve this problem?

Thanks,

Dave