Coup d etat by tenants. What would you do?

[Javier D.]

Hello bp fam,

Last week I closed on a 12 unit building 100% occupied with under market rents. Market is 1100-1200 currently all units are rented at 750. I sent a letter Stating rents will be increasing to 1000.00 starting August 1st. Local law doesnt require me to give this much of a heads up as tenants are currently month to month. Here is where it gets interesting:

Unit 6 previous manager who is paying 550 decided to not pay and threaten legal action. She brought 4 tenants on with her. Usually When I stabilize a property I would just commence eviction process but here enter pandemic eviction moratorium. I figured I would get some resistance but this is a little more extreme than I’ve encountered before. My plan of action as of today is to tell these tenants 850(100 increase) continuing month to month. The tenants whom agreed to 1000 will be getting annual leases. Local market has waiting list and I own a 40 unit across the street 100% occupied. What would you guys do? How would you handle it?