Raising Rents without Losing Tenants

[Shawn Dandridge]

Hi,

I am interested in purchasing about 12 properties from an older lady whose rents are WAAAYYY below market rate. The trick is that some of these tenants have been renting from her for 15+ years. Example, one rent is 225.00 for 1/2 of a duplex, going rate in the area is around 500.00. How can I raise rents to somewhere around that range without running off a tenant?

[Steve L.]

If you buy 15 I would be careful and only raise a couple at a time. If 75% move you don't want 10 vacancies at once. That would be hell.

If it was me I would also fix/upgrade something for free... maybe add a new stove to the unit, or upgrade the flooring in a room to show that their first experience with you will set a decent tone on the relationship.