Getting rid of inherited tennant with 11 months remaining

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Hey everyone,

Looking for a little advice from someone who might have had a similar circumstance in their careers.  I am closing on a new duplex in NE Minneapolis, MN next week and have inherited tenants in both units.  The lease for one of the units is up at the end of the month and I will be giving that tenant their 30 days after closing.  The other tenant signed a year long lease the day before the house went on the market.  Yes, that is correct, the very day before it was listed.  I am not sure the circumstances of why this happened but at this level of the game it is a mute point.  I am really wanting to get that tenant out for two particular reasons:

1- I would like to do some rehab to the units in order to spruce it up a bit

2- The rents are very low for the area (another reason I think there was something shady behind the signing of the lease the day before).

My initial thoughts were to explain that I want to do some rehab and ask them to sign a 30 day lease with a guarantee that they get there deposit back and a free 30 days.  After the work is done I would allow them to apply through my background check and have first dibs at the new rate.  This is essentially paying them to leave.  This way they leave on good terms and don't have a sour taste like they are getting the boot.

What are peoples thoughts?  Suggestions?

Would love to hear if people have done anything to deal with this situation in that past.

[Jeff Sheraton]

I'm not sure of the MN specific laws, but I would have to imagine that if someone signs a year long lease you would have to honor it.  Of course there is always the option to try to convince them to leave or maybe even buy them out.

Personally my thought would be that if the property cash flows just let it be.  Fix the first unit while the other is rented.  No point in having two empty units at the same time.  

Maybe after the first was finished you could offer the current tenant the opportunity to move into that unit for the remainder of their term with the understanding that the rent will increase at it's expiration.