Inherited tenant who lives in the unit for more than 20 yrs

[Oliver Santiago]

Hello everyone, I am currently negotiating on buying a 2 unit property in my area. When I looked at both units, I asked the tenants in one of the unit on how long have they’ve been living there. They told me that they were there for 20plus years. I am asking this group for guidance because I do not know how to ask them to move out so that I can update the unit and rent it at market rate. The tenants are a couple who is in there 70’s and have no intention of moving out. Their rent is well below market rate. Please advise

[Mike Dymski]

2-3 months prior to lease maturity, provide the option (1) to renew at market rate with X renovation or (2) provide 30 day written notice to move out.  Be candid, treat them with respect, and give them lots of time.  $250-300 is too much for tiered increases over an extended period...that sounds miserable for both parties.  If you are not morally comfortable with that plan, move on to the next opportunity and another investor will do it.