RENT CONTROL FOR PROPERTY WITH NEW TENANTS

[Liam Mullins]

Hi all, 

I am about to purchase a fourplex in St Paul and just hit a snag. My goal is to have all four units as mid term rentals. My agent said there has been approval by St Paul for some specific rent control rules and isn't sure if I can raise the rents. The exisiting rents are far below market rate. 

My big question here is if I rehab these units and list them as mid term rentals can I price them however I see fit? 

My second question is as a plan b strategy I would rent these out long term, but again can I set my own bar (within reason) to make my numbers work or can I only increase the rent the percentage deemed by St Paul from the rent the current tenants are paying?

The property I am purchasing has existing tenants, all on a month to month basis, two of which are happy leave two would like the option to stay. This property needs lots of updating. lots. My original idea was to rehab the two units with voluntary exits, renewing the leases for the other two  for a year and then repeating a year later. 

Any feedback is helpful 

Thanks

[Theresa Harris]

If it is a local regulation, call the city and ask. Here's a link to the regulations as it is best to read it for yourself.  Most places I know (not referring to St Paul), the rent caps apply to existing tenants and long term rentals.