Tenants want to switch apartments

[Sam Leon]

I have a four unit building, apartments 1, 2, 3, 4.  Each apartment is different, some are two BRs, some are 1BRs, and they are all different in sizes, with slightly different layouts.  Making each unique.

Unit 3 is moving out at the end of a lease.  Unit 4 wants to move into unit 3.  Unit 2 wants to move into unit 3 as well, and Unit 1 wants to move into unit 2.  They all have their reasons, the other unit is bigger, more natural lights, its an end unit, closer to laundry, more storage etc etc etc...

I have done this in the past, allowing one unit to move into another, but it translated into more work because instead of having to turn over one unit for rent, I have to turn over two units.

Now, with unit 3 moving out, instead of turning over unit 3, if I let them all switch, I have to turn over ALL 4 UNITS!  That translates into more time, effort and cost.

I don't think I can selectively pick and say unit 1 can switch but unit 4 cannot.  That would create some negativity between me and unit 4, and some between the tenants themselves.  I would have to say yes or no to them all.

One option - is to do some calculations and figure out what it might cost me.  Then approach each tenant who wants to move with a new lease - because a new unit requires a new lease and a different (HIGHER) rent.  Some may elect to stay once they find out how much (although they know how much the existing tenant is paying).

Thoughts on how you would handle this?

[Theresa Harris]

Tell them the rents are going up for the new units and that you do this every time there is a vacancy.  You could also end up having a vacancy for a bit because you can't move 2-3 units at the same time.  Give them a couple of days to decide and then go from there.  

While it might be chaos for them trying to all move (and you deal with security deposits), at the end of the day, you'd be getting more rent for 2-3 units.  Add that up over the course of a year and decide if it is worth it.  They are the ones doing most of the work as they have to pack and unpacked.

You have two people who want to move into the same unit-ask them how you should decide, draw a name out of a hat or the person that was there the longest gets first choice.  If that is unit 4, then you only have 3 units turning over because unit 1 can't move unless unit 2 does-domino effect.