How far to bend for a new tenant

[Petya Toncheva]

I recently purchased a duplex in Fairfield county. Each unit is 2 beds, 1 bath, 9 ft ceilings, parque floors, both apts are 1066 sq ft.

Cost: 600k

Down:25%

When I bought the property one unit was empty and the other unit had a tenant who was paying $1700 but agreed before the sale was final to start paying $1850. In this market these apts go for $2500 to $3200, so she was still waaaaay under market.

A few days after closing I spoke with her and explained the market to her and since she was living at the property for 6 yrs I would only raise it to $2500 and she agreed without even batting an eye.

Something was strange cause 2 weeks goes by and she didn’t sign the lease. So, I see her at the property and her boyfriends comes out and says he will be moving in, I say totally fine but you’ll need a credit check and background check at your cost and also the rent will go up to $2650.

Another week goes by and she says no her boyfriend is not moving in and she’ll sign the lease for $2500.

Again another week she doesn’t sign the lease . I see her on the property and her, her boyfriend and her daughter corner me and almost demand that I let the boyfriend move in but at the rate of $2500 not $2650.

So my dilemma is:

1. I am already just at the market rate at $2500 but should be higher. So I’m already bending for her, do I bend more and give in to her requests.

2. I don’t want them to become tenants from hell

3. Do I negotiate further or do I stand firm on the $2650?

I hope I didn’t bore you, anyone going through this or been through this. Please share your thoughts.

Would love to here from you all

[Nathan Gesner]

Quote from @Petya Toncheva:

I think you are making a mistake by keeping her. You don't want a tenant that plays games, which she's already doing. And why would you subsidize her rent by keeping it $700 below market? That's $8,400 lost in your first year so she can stick around and cause trouble?

A good tenant would have signed the lease immediately and they wouldn't play games with adding/removing people. Terminate her lease and find someone that is willing to sign the agreement and pay you what the property is worth.