Raising Rent to Market Value - Month to Month Lease

[Luis C.]

Hi BP,

I've been following BP for a long time and my wife and I, finally, took the plunge and bought our first rental and now our second and couldn't have done it without the huge amount of great advice from this community. 

With our second property, we bought it with an existing tenant who's on a month to month lease paying $850. I plan on making some improvements to the property to bring it up to par with what's available on the market. Fair market rent for this area and property post improvements would be $1000-$1100 monthly.  

As a newbie, any advice on how to best go about this and what should I be considering?

ie. How much notice? The winter is coming and will make finding a tenant a bit harder so should I use that time to perform my rehab? Tenant laws in NY State. 

Thanks!

[Nathan Gesner]

I would time it so you will be ready to place the new tenant during peak season. If July is the best month and it will take two months to renovate, keep your current tenant until April 30th, spend May - June renovating and place a tenant in July.

If the unit rents for $1,000 - $1,100 after renovation, then $850 isn't too far below market and it's worth keeping the current tenant through the winter.