Rent below market value

[Kodi Parker]

Just purchased a triplex( first rental property) with two tenants occupying the units one being vacant. The rent they are paying is way below market value. How do I approach this situation to increase rent setup payment options as well as leases?

[Rob B.]

Hi Kodi, great question. Since it sounds like (2) of the units are occupied with (1) being vacant; right now I would focus primarily on getting that one unit filled. Since the other two tenants are currently on a lease, you have to honor that rent price until that lease term is up. At that point, I would consider your rental price hike. However, I do have a few questions; have they been paying on time? What condition are the two occupied units in? I only ask this because if they've been paying on-time, and the units are in great condition - it may be worth settling on a number that works for both parties. Just a thought. Still, as Patricia noted, if they aren't on a lease (or are month to month) give that standard notice but also make them aware that if they want to stay, they need to pay that new rent price. @Kodi Parker