Unique situation: Kick the current tenants or leave them

[Spencer Joseph]

Hi BP Community, 

I have an interesting situation and was hoping for some help. I just got an accepted offer for a multi family (2 units) in a beach community near my hometown. Both units are currently occupied with long term tenants that pay $1,000 and $1,350 for their units a month. From a ton of research and analysis of the area I am sure I can get at least $1,200 and $1,800. Both tenants have expressed their want to stay. I have run the numbers and even at the current rents the property would still positively cashflow fairly nicely. 

This is where it gets a bit tricky. As I mentioned this is a beach town (not predominantly but the units appeal is the location). The current tenants are month to month and will need 60 days notice before I can kick them out. My fear, and maybe this is where more expertise can weigh in, is that if I close on the home say late August and tell the current tenants to leave that by the time the 60 days is up it puts us in late October early November. Am I screwing myself by having an empty house on the off season where it may be significantly harder to rent? Do I leave them there and kick them around February in preparation for the spring/summer? Or do i just kick them and use the winter months to renovate so when the season comes I can maybe get more rent than anticipated. 

Any input would be really appreciated.

Thanks, 

Spencer

[Clay O.]

After closing you could explain to them that rents are way under market and that over the next year you will be raising rents gradually, starting in Feb or March (past winter). They would probably stay until that time which would get you past winter and if they decide to stay permanently you wouldn't have the turnover and vacancy expense. 

Good Luck