BRRRR-ing with existing tenants

[Anthony Paul Guglielmi]

I just bought a duplex. The unfinished basement is huge, big enough for 2 more units. Right now the current tenants have access to it for “storage”. They are currently on a month to month lease.

I would love to get started converting that space, but I’m concerned on losing them as tenants if I approach it too soon. Their current rent is also over $200 below market. So I feel like it’s going to be weird to raise the rent and take space away. Any advise?