Offer tenants the choice between 2 leases?

[Brian McHugh]

I'm closing on my first investment property this Friday in Lancaster, PA.  It's a duplex with long-term tenants who are getting a steal paying way below market value.  I'm sure the tenants are torn between paying more or moving out, but I have to raise rent to make the deal work.  Does anyone have feedback on the idea of presenting the tenants with a choice between two leases?  One option would be to stay month-to-month, but jump immediately to my goal monthly rate (a 40% increase of their current rate) and the other option would be signing a 6-month lease at an interim rate (about a 20% increase), with the understanding that after 6 month the rent goes up again to my goal rate.  In my mind, the options soften the blow and don't scare the tenants away as easily.  Worst case scenario is that they both say no and move out, but is this a weird idea?  Thanks for any feedback.