VA owner occupy, kicking out a tenant

[Glenn Espinosa]

I bought a quadruplex recently under a VA loan and I need to move into one of the units. Problem is, all of the tenants are very good as stated by the previous owner and from what I see in the records. They are all month to month as well as pay month to month. One tenant has lived in the building for 23 years. One unit is occupied by an elderly woman who has been in the unit for 8 years, her son and niece live in another unit and have been there for 2 years. The last unit is occupied by a white collared professional who was recently divorced and has lived in the unit for 2 years..

The units are all paying $620 and are due for a rent increase (very good rent as according to rent-o-meter) A $25 increase would put the rents at just below average on rent-o-meter.

I am considering writing a letter in which I introduce myself, ask for a volunteer to move out, and notify everyone of the $25 rent increase. I am planning to use a tactic that I read about here in which I offer a $50 giftcard to those who choose to sign new leases with me. Problem is, I need someone to move out, should I offer an incentive for moving out, or is the increased rents incentive enough?

Anybody have experience with owner occupying a rental and having to pick between good tenants? If so how'd it go?

Should I take this opportunity to ask for a relatively larger rent increase seeing as I actually need a tenant to move out (hoping the others stay put at the same time)?

Thanks,

Glenn

[Jim Stardust]

I think you'd be better off with approaching them one tenant at a time, you can send a letter introducing yourself and how you will be raising the rent modestly to account for new operations costs, etc. It sounds like your best bet is to approach the professional first though he would likely be most able to afford a rent increase, the two family units may move out all-together if one of them is forced to move and then you have an extra unit to rent. You may need to offer some incentive to whoever move if you really must move there, it does sound like you have very good tenants.

Look at the record and see if anyone has been a bit flaky with their payment or having other issues. The last thing you need to do is have them form an opinion of you as the new "jerk" landlord that wants to milk them for more money and move in next door.