Managing Your Property
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated 8 days ago,
Should I keep inherited tenant?
HI BP,
I am currently looking at buying a single family rental property that is currently rented. I personally know the person that owns the property and am close friends with him. He has informed me that the tenant has never missed a payment and has not caused any problems. When I looked at the house they kept it very clean. However, the property currently rents for $850 and market rent calls for at least $1,000. I know that the tenant currently makes $33,144 gross a year which would be $2,762 a month. This would not meet the 3X monthly rent rule at $1,000 a month. Do you think I should not renew the lease when it is up in April and find a new tenant or since it is very close to the 3X monthly rent rule let it slide?
Thank you in advance for everyones help with this decision.