Newbie dilemma, problematic tenant- increase rent or end lease

[Sri P.]

Hi All,

Am new to the forum and wished for some advice on whether it is worth keeping a problematic tenant.

We recently bought a three flat in the Chicagoland area, our first. The tenants in the second floor and garden unit are responsive to information requests and maintain the property well. 

However, the first floor unit tenant has become a concern. They pay $1800 a month for a three-bedroom unit, which is slightly below market rent for the area. The tenants in this unit have been very curt whenever we communicate with them and do not maintain the property well.

All three tenants have been in the property for a couple of years. When we bought the property (4 months ago), we requested the tenants to give us information on who occupies the units including pets. No response from the first floor unit. We know that they have a large pit bull. We also find that they do not take the dog out for a walk for it to relive itself. The dog pees and poos in the deck in the back which makes the rear of the property smell bad. They also leave trash around the back deck that gets blown around. It is hard to get someone to clean the property because of the smell.

We received two water bills thus far. One for usage of 19000 gallons of water and the next for 32000 gallons. we get billed once every two months. The first floor unit has the most occupancy with a family and (2 adults and 2 kids) kids. The other two units have two adults each. We feel that the excessive water usage is likely from the first floor occupants.

Lease for the first-floor unit will end next March. Here is our dilemma:

• Should we increase the rent to $2000 and allow the tenants to stay if they are willing to pay the higher rent or
• should we not renew the lease, have them vacate, and find new tenants

Any advice would be greatly appreciated.

Thanks in advance.

Jennix