I just got a duplex and now I Don't know what to do!!

[Gerardo Hernandez]

Hello Everyone, I just got my first house hack. I am extremely excited for what's to come but I am not sure what to do with the following. The renters on the other side are paying 790 for rent at the moment but I need the rent to be 900 and above to make the numbers make sense. Their lease is done in August and I want to know how to go about raising the rent? I also see that in their current lease it says they shouldn't have a dog but they do have one. How do I go about charging for a pet fee and how much do people normally go for? 25? 40?. Also I think I am going to have them sign a new lease with me but I have no idea what needs to be on a lease to watch my back and so its all in writing. 

Also, I know there is a lot of tax breaks now that I am a landlord. Let me know if you know any resources that might give me more information on that! 

Thank you all in advance!!!

[Nathan Gesner]

Originally posted by @Gerardo Hernandez:

Hello Everyone, I just got my first house hack. I am extremely excited for what's to come but I am not sure what to do with the following. The renters on the other side are paying 790 for rent at the moment but I need the rent to be 900 and above to make the numbers make sense. Their lease is done in August and I want to know how to go about raising the rent? I also see that in their current lease it says they shouldn't have a dog but they do have one. How do I go about charging for a pet fee and how much do people normally go for? 25? 40?. Also I think I am going to have them sign a new lease with me but I have no idea what needs to be on a lease to watch my back and so its all in writing. 

Also, I know there is a lot of tax breaks now that I am a landlord. Let me know if you know any resources that might give me more information on that! 

Start educating yourself ASAP.

My favorite book for the last 16 years is "Every Landlord's Legal Guide" by NOLO. It gives you a TON of practical information about managing a rental and it includes your state-specific laws. They also have a great website and sample forms.

You can buy the Landlord Package from Biggerpockets ($100 or upgrade to a Pro account and it's included) and that will give you the lease and some other handy forms that were developed by actual investors and vetted by state attorneys.

As for the tenants, I recommend raising the rent with 30 - 60 days notice. Don't increase the rent over a period of time because that is more likely to cause confusion, problems, and animosity. Pull the band-aid! Give them notice of the new rate and stick to it. If they can't qualify and afford it, let them move on and find a new, qualified renter that will pay market value.

Dog is unauthorized. Give them notice today, not next week or next month or at renewal. If they are willing to violate your lease and sneak in a pet, they're willing to violate other terms. You don't have to be mean or emotional about it. Just notify them the animal is a violation and then charge them a monthly fee, demand they remove it, or whatever you want to do. I recommend you conduct a walk-through inspection to see if there's any pet damage.

Lots to do. Take it one step at a time. Educate yourself on one issue (how do I handle an unauthorized animal?) and get it under control, then work on the next thing (how do I raise the rent?) so you're not overwhelmed.