NJ: Inhereting Renters Paying Under Market Rent

[Brian Wolf]

Hello BP crew! I just got my first offer accepted on a nice little duplex that I'll be house hacking here in south Jersey. I will potentially be inheriting a renter, who signed a lease through Jan2021, who is currently paying $800. I believe this to already be below comps at about $900. Additionally, I would like to make some upgrades (Converting oil to gas heat & adding central air in the spring & switching to a more renter friendly experience via Cozy or some other portal are first primary upgrades) and believe that would also warrant a bump in rent. The current renter, a nurse, seems to be a very neat and organized renter, ideal! However, I need/want to make what the apartment deserves to bring in.

A couple thoughts I had, is raising rates right off the bat a bad idea for a newbie and is having a renter just more important to start? If raising rents is warranted, whats your thoughts on bumping to $850 initially for a 6 month lease, then raising to maybe $925 after A/C Cozy is implemented in the spring? Better to leave it $800 until after value is added? Would that larger eventual bump be more damaging? Last question is, will I be drawing up a new lease with the tenant either way or will I just inherit the lease they had setup?

Thank you all!