Occupied duplex lease question

[Jonathan Roberts]

May pull the trigger on a duplex which has tennants who's lease ends in Sept and Oct. I asked my realtor to inquire about their payment timeliness to guage the tennants. My idea is to leave them as month-to-month for perhaps 6 months then if they are timely on payments, have them sign a new lease, but then it may be a good idea to have them sign a month to month lease right away to educate them on my expectations then another in a few months later at 12 month?

One unit is renting for 600 and I'm ok with it in its current condition, would up the rent after they move out and do some repairs, rehab. Perhaps 625/mo.

The other unit is way under charged at 685 for some reason; 3bed, 1 bath, garage. I would pretty much immediately raise the rent even with the risk of losing that tennant. It would go for at lease 850/mo.

What would you do in this situation?

Thanks!

-Jon