Existing tenant month to month

[Dave Schimmels]

My wife and I bought our first duplex with tenants in place. 2nd floor tenant is on a year lease, but the first floor tenant is month to month and has been renting for the last 16 years. She is older and is on a fixed income. The seller does not have a lease to transfer to us. Her rent for the last 16 years has been $495 for a 3 bedroom, which is definitely very cheap ($850 would be more acceptable). My question is: how do you go about raising rent from $495 to $625 and getting on a 1 year lease after 16 years with no increase. (insurance cost $75 more for a short term rental)?

the tenant being older and on a fixed income also has someone else living in the unit, that may be able to contribute. Being new as a landlord, we are not sure how to go about it.

Do we have them fill out another application? Or do we give them a verbal and written notice of the increase first? In case they decide they want to move out in 30 days.

thanks for any advise in advance

[Bruce Woodruff]

You say that $850 mo. would be 'more acceptable'. But what is the going market rate? How much are you really subsidizing her rent?

While we all can feel for an older person on a fixed income, you are running a business here, not a charity.....

If you really want to help, you can research and help her with housing options for low-income elderly. But don't make this your problem, you will never get a fair rent value from a person like this.