New Purchase with a Tenant

[Kevin Janssen]

I'll be closing on my first duplex in about a month and will be inheriting a tenant on the second floor in which I will be occupying the first floor.  Currently the tenant is on a month to month lease and getting a break on the rent as his buddy owns the house and he does the yard work which I will be taking over.  Based on what I have seen for the market rents we are about $100-$150(max) under priced.  I would like if possible to keep the tenant as he has a steady job and has done a good job keeping his unit and the house well maintained.  What is the typical procedure for raising rent, are you able to do it right away or I believe per what i've read you need to give notice.  To also throw a wrench in things I will be leaving for vacation a month after I close for 10 day's so dealing with a move out/finding a new tenant would be very difficult.  I greatly appreciate any knowledge and thoughts you might have!

Thank You,

Kevin

[Cody Barrett]

I was in the same position a year ago. But I wasn't moving in. I inherited the upper, lower was vacant and I remodeled it to max the rents out. He was 150 below market but super clean and kind. His unit needs work though to re rent if he were to leave. So I kept his rent the same for 2 months until I finished remodeling and finding a tenant for the lower. I signed him to my own lease after 2 months with a 100 dollar rent raise, he knew I ran this as a business. His past landlord was retired, tired, and passive. So it took an hour to thoroughly explain my processes and it's paid off since. He's never late nor complains and keeps his unit clean and respectable. He's still a bit below market rent but it's worth his long tenancy. Been there since 09  

Cody B