Seeking advice on planning rehab with long-term tenants

[Kristopher Toribio]

Hi everyone,

I’m closing on a duplex in Irving Park this week and it is currently occupied by long-term month-to-month tenants with rents way below market. Plan is to force appreciation through renovation, raise rents to market rates, and house hack one of the units.

This will be my first rental property and wanted to see if anyone could offer any insight as to how to approach the rehab and exiting the current tenants. I’ve received several recommendations including rehabbing one unit at a time while keeping the other units occupied to minimize holding expenses, while others have suggested vacating the entire property upfront prior to renovations.

That being said:

1) What would some of you suggest and what are your reasons why?

2) Would 30-day notice +/- a week or two be sufficient? I’m thinking of possibly giving 60 day notice with an incentive if the tenant is able to leave within 30 days.

3) Do you hand-deliver your notices and require the tenant’s signature?

I’ve never given tenants notice before and can’t imagine a “Hey I’m the new owner just wanted to introduce myself, oh and by the way you have to vacate the property in 30-60 days” would go over very well.

Thanks in advance!