I am in the process of purchasing a 3-unit property and would be inheriting the tenants, who are month-to-month. Since the tenants would like to stay, I figured it would be easier to keep them (assuming they are good tenants who have always paid rent on time, which I am in the process of verifying) so that I will have immediate cash flow rather than having to find my own tenants and dealing with vacancy.

My question is, is raising the rent $100 on each tenant to meet market rents (because currently they are below market) too aggressive and offensive? The last thing I want to do is insult anyone, but I feel that it's fair for me to raise rents to market value as the new landlord of the property. I have no idea what kind of landlord they have now and what kind of maintenance he provides, but I want to be the best and most professional landlord for my tenants (hopefully they will notice that I am better than him). If the purchase of this property goes through and I become the owner, I will be doing some renovations (e.g., cleaning up the basement, repainting the exterior, and replacing the roof within the next few years). If I let my tenants know about these things, will they feel less of a sting?

If I follow through with this property, I would be closing in October. My plan is to notify the tenants of new ownership immediately, sending them a "welcome package" and informing them that rents will be $100 more starting in January 2022. This way they have ample time (more than the standard 30-days notice) to decide if they want to stay or leave by the end of the year.

Please share your honest opinions and let me know if what I'm thinking is fair or if you have a better approach.

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Raising Rents on Inherited Tenants

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