Should I Inform Good Tenant Early???

[Mitch Price]

I purchased my first duplex in March of this year. With it, I have a tenant already in place on the other side. The sellers (who were investors themselves) raved about how good of a tenant they have been for years! They pay their rent faithfully every month! I don't have any problem or issues with them thus far. HERES THE TWIST.....they have been so faithful with paying because their current rent is $550 and the market I'm in ask for $780! Now of course I can't touch the inherited lease until January 31 of 2019. My question is should I inform my current tenant early (say 6 months) of the incoming rent increase, once their lease is over in January. They have been a good tenant so far, Id want to give them plenty of time to think it over. Legally I have to give them a 60 day warning before the lease is up. But I'm thinking of doing it earlier than that. Good idea or not?????

[Ray Harrell]

Earlier is better. Have you considered stepping up their rent? If they are that good and pay on time and take care of property, that's worth its weight in gold. Let's say you get someone in at $780, but you are always chasing rent, making repairs, they bring pests and rodents, and when they leave you have to put in $3,000 to bring it back up. Maybe go $620, $680, $730, $780, $850...5 years you will be at market rate, and possibly keep great tenants.