How to Accomplish Major Repairs with Tenants

[Matthew Lindsey]

Hi,

Im getting close to closing on my 1st multifamily property and I'm in need of advice and opinions. A little background on the property: The property is 2 brick ranch duplexes on crawl spaces and on one piece of property. 3 out of 4 units are occupied. I have asked that the other unit not be rented out until I take over. I plan to do some light renovation on the 1 unoccupied unit and put it back onto the market. The tenants are month to month with verbal leases, I have signed estoppels. The tenants have been there 2,10, and 13 years and there are no tenant applications or anything for me to look at. The owner just inherited the units and doesn't want anything to do with them so he doesn't much information. My questions is:

- Unfortunately, the unit of the 13 yr tenant needs work pretty quick in my opinion. I believe they are still happy and not complaining because they are paying below market rent. I feel like I need to address the issues in their unit but I don't believe it can be done with them living in it still. For instance, one of the bedrooms has a sagging floor due to a few floor joist needing to be replaced and their bathroom needs the same thing. I feel like it needs to be addressed because if the joist decided to give out then I may have a lawsuit on my hands. My 1st thoughts since I have to give them 60 days notice to evacuate the unit was to renovate the one vacant unit and see if they would like to move in it for good and then that would free up their unit to be fixed. I feel like it wont go over well because the rent on the renovated unit will be a minimum of $150 more per month. On the other hand at least it gives them the option of a place to live and I'm not kicking them out on the street. I just don't see how I can get their unit fixed safely with them in it. What would you do in this case? My head keeps going back and forth from a business stand point to being a nice landlord. I'm sure I need to weigh the fact that they have been there 13 yrs, but on the other hand they are the messiest unit. So much clutter in their unit that my exterminator probably could not treat their unit properly for pest, I guess from being there the longest.

Thanks ahead of time for any information and opinions.

Matthew Lindsey