tenants in place in duplex im buying??

[Nicole Wood]

Hello,

I have a dilemma and need to have some professional advice here. We are buying a duplex. There are already tenants in place however the lower apartment will be vacant when we buy it because were househacking. The upper apartment tenant pays 275 a month for a huge 1 bedroom because he was friends with the owner. The market rent for an appt like this in the area is 500$. We would be willing to keep him if he would pay 480-hes a long term tenant and pays on time etc according to seller anyway. However, we cant ask him or give him notice of increase in rent until we OWN the house AFTER closing. So my dilemma is...if he stays we would be okay with him paying 275 for the time between giving notice and it taking effect however he could also decide to not want the rent increase and decide to not pay the last months rent and even make us take him to court for eviction which could cost us up to 750$. A pro of keeping with him is someone is paying although i think we could definitely rent it out easily for 500$ a month. However, I just dont trust people all that much with what i've already been through. Any advice?

[Thomas S.]

I would strongly advise getting rid of the tenant. Friends of the owner almost always turnout to be horrendously bad tenants. Have the seller get rid of him or have them raise his rent to $500. If he is on a term lease, which is highly unlikely, you will need to give notice as soon after taking ownership as possible.

Make sure you get esstopal letters in this situation.  

Cleaning house is always better in the long hall when facing inherited tenants.