Evicting month to month tenants on new purchase

[Brian Orr]

If you all read my previous post you know I just acquired a 4 unit building in rural North Carolina. We discussed plans to raise the rent, allocate utilities to the tenants, pet fees, etc...

Well I just met with all of the tenants individually, all of whom are on M2M. Early in the conversation I let them know I would not be accepting cash as the prior owner did. This alone was met with near rage about having to figure out an app or having to pay $1.60 extra for a money order or 2% at a cash deposit station... I never even got near the point of raising the rent $55/month, pet fees, no more smoking, etc... Needless to say I think I need to take another route.

The challenge here is getting the tenants to realize the old guard is out and new rules are in place. I'm willing to give them until jan 1 to enact the new policies and rates, but I know I'm being met with high resistance, and I fear they'll keep retreating back to "this wasn't how we used to do it"..  I wanted to ask what you all thought of this plan:

I want to give notice of termination of the leases this week, effective move out December 31 (This is more than the 30 days required by NC law). With that, present them with a rental application for the new lease to begin jan 1 with all of the policies and rates and allow them the opportunity to choose to apply under new management.

Of course I hope they'd like to stay, but if not, the place could use some updating and I can likely get new tenants in at $500 once that's done. 

It's 7am while I'm writing this, and I will check with my lawyer first, but nothing beats the BP feedback and experience.

Thanks in advance for your input!

[Nathan Gesner]

@Brian Orr I would have avoided that conversation. If you give them some changes today and more changes tomorrow, it will feel like an endless barrage of changes and you'll have an uphill battle.

I recommend a short, professional letter that explains where you're headed, to include a pet-free and smoke-free property. I think your plan is pretty solid. Give them notice that their current lease expires December 31st. They have the option of moving out, or they can apply and - if approved - sign a new lease prior to December 31st and continue renting under the new terms.

Make sure your screening standards are already set and screen every adult. If they have pets, you may consider charging an increased rent rate. People with pets are less likely to move because it's hard/expensive to find pet-friendly rentals, particularly in your price range. Spell out the acceptable methods of payment and that you expect timely payments. You don't have to be mean about the changes but you should be professional and fair.