Should they stay or should they go? Inheriting tenants!

[Christen G.]

What's everyone's opinion on inheriting tenants? I've heard a lot of strong opinions on "terminate immediately and start fresh." That's usually based around the theory that this way you can screen the tenants, gets rents to where they make sense for your deal, etc... We're closing on a triplex and everyone is on month to month leases. I'd like to do some renovating in one unit specifically - should we just terminate and get on with it or issue a 12-mo lease with higher rents and give them the option to stay? Thanks everyone.

[Account Closed]

Four months ago, I inherited two tenants in two units about the same time.

I had a brief conversation with them while sign the new month-to-month lease under our names immediately after the escrow.

I checked around the properties condition on the same date. I waited one month to see if they pay rent on time.

Two months after close of escrow, I raised rent (from $650 to $800) to one tenant whom I want to keep. He is very clean, neat, and pay rent on time. He accepted my new raised rent offer.

I sent a 30-days move-out notice to another tenant whom I do not want to keep. Dirty, smoke inside the property, property has strong smell of cigarettes.

After the smoker moved out, I renovated and raised the rent (from $800 to $925), rent it to a high income high credit score, clean and neat tenant.

Keep it or not, depends if the tenant is your ideal tenants or not.