Purchasing Duplex with Tenants and AB 1482

[Tomas Lam]

I am in the process of purchasing a duplex in CA Bay Area and will have to take over the month-to-month lease with the long-term tenant (7 years) in one of the duplexes. The duplex will require some major renovation due to termite and mold infestation. I also did a lot of research found that the tenant paying rent below the market price for a two-bedroom/one-bath ($2450 per month) current rate in the area is around $3500 since the duplex has a garage, W/D, and a backyard with a large shed. The duplex cost around $1.5 million and I will live on the other unit. My plan is to ask the tenant to vacate in July to fix up the whole duplex and move into their unit after the eviction moratorium. Any advice on what to watch out for? Besides paying the tenant last month's rent (relocation assistance) any other cost I need to consider?