Purchasing duplex w/long term tenants who pay $1K under market

[Joan Smith]

Hi, 

We are purchasing a duplex. The current tenants have been there ten plus years are paying at least $1K under market and want to stay. They are month to month. They can not afford a $1K increase and I need to raise the rent at least $800 to cover expenses. I know the market as I have two other rentals in the town and in this market I could easily get $1,200- more than what they are paying. How can I increase the rent fairly? Have not seen the lease I am told they are month to month 

[Scott M.]

Fairly is a word that you and the tenant will disagree on so maybe not use that.

First, I would check on local laws regarding rent increases to make sure you can even tell them your desire.  Don't want to step in it out of the gate.  Then, you just do what you got to do assuming the current lease and local laws don't prevent you.

You seem to already know their answer so make sure you are prepared for the costs of a turn (Again, before you tell them) and then after you own it you tell them.  

There is no kind or fair way to tell someone you are going to raise their rent 800-1,000...and no, it will not matter to most that they have had cheap rent for many years.  You won't agree on this topic.  And you will not be the good guy in this situation so there is no need looking for a way to be.  Even calling yourself a housing provider won't help you here : )   Call back to that monstrous thread.