What would you do with a long-term tenant who smokes?

[Nic S.]

I am looking at a Duplex in the KCMO area. It is a side-by-side duplex with 2/1 and 1/1 unit. The 2/1 is vacant but the 1/1 has been occupied since 2005 with a tenant who pays their rent yearly upfront ($390/mo). The tenant is a smoker and most likely smokes indoors. I do not know the status of his lease - I am tracking that that down now. Tenant is under market rate by roughly 10%.

I do not allow smoking in any of my units. How would you handle the situation? Would you ask him to stop smoking, how could you enforce it?

For context I am an OOS investor with a PM local to the area. The deal would yield me 11% CoC and roughly $280/mo cash flow after expenses which is fine by me.

[Nic S.]

@Nathan Gesner love the idea of an automatic 3% increase. And you're right, the damage has been done. I'd rather have him out and update the unit but maybe the increases will help facilitate that. Thanks for the idea!