I am interested in this discussion. I recently acquired a 2 unit property with tenants who have been in the respective apartments 20 and 30 years. They are only paying $355 a month, way below the market. Most are going for $650. Granted the place hasn't been updated in 20 years.
I plan on raising the rents to $500 each apartment so I can update the place and eventually get to $650 in a few years. They are on a month to month with the previous seller and so I have to give them 30 days notice to increase. What is the best way to do it?
When we were looking at the property, the one tenant asked our realtor if we were going to kick them out and she said no but the rents will have to go up to fix and update things. The upper tenant started talking about being on a fixed income and retired. It's not section 8 but do I just wait til these people leave for a retirement home or say sorry, $500 is a cheap apartment and things need to be updated. The tenants made comments about how things were new in the 90s like implying they want things updated.
