Raise Rent for Tenant Paying Less Than Lease

[Rob Stein]

I am hopefully going to get a duplex under contract next week, each unit already has tenants on current leases. In one unit, the rent is 2,200 a month on the lease, which the tenant was paying, but lost his job and the current landlord is allowing him to pay 1,800 a month. There’s also wording in the least that says the tenant can renew the lease at current rates. My question is, if I take over the property, should I wait until lease renewal in November to ask for the 2,200 a month, or sooner? The 1,800 is an informal agreement between the tenant and current landlord, the lease says 2,200. Thank you so much for any advice or thoughts!

[Gordon French]

Can the tenant afford it?
Can you afford to loose the tenant? 
Are they taking care of the property?
How long will it take to get a new tenant? 

I don't like turn over. I would inspect the unit and if the tenant is taking good care of it I would talk to them about the likely hood of them finding a job. I would explain that I need them to stay in contact with me and work with me as I cannot leave the rent that low for long. I would figure the time frame based on the answers to the question above.  If its vacant for 1 month you loose the $1800. So, you can afford to let him keep it at that rent for 4.5 months and not lose a thing.