All Forum Posts by: Jason Bach

@Theresa Harris

We do have the money. Appreciate the advice!!!

@Jason Bach

We would recoup all the cost of the remodel within four years

@Theresa Harris

It probably cost us anywhere between six and $10,000 to remodel to a point where we will never have to touch it again.

My wife and I currently own and live in a three unit building in Chicago. We have one studio occupied by a tenant who has been there for two years who pays $850 a month. The other unit is a two-bedroom one-bath and rents at 950 a month. The two bedroom one bath unit is not remodeled and if we were to remodel it we should easily be able to get $1,200 on the low end, judging by current rents in the neighborhood. I put an increase to 1,075 into the lease upon renewal. We like the tenant as well. Just wondering people's opinions on whether or not to just not renew, renew at 1075, or other ideas?

I currently have a tenant whose lease expires in March. When we first purchased the property we inherited a lease that was far below market rate. When the tenants lease expired last year we renewed with a $75 increase (still below market, we were having a baby at the time....). When renewing the lease I wrote in the addendum the “rent will increase $125 per month upon renewal.” We now have the funds to remodel the place and would like to not renew because we feel, even with the increase of 125, we could still get more and also have the time to put our touch on it. Would there be an issue with non renewing? I fear the addendum I put it means if they are willing to pay the increase they stay.

I currently own a 3 flat in the Mayfair neighborhood of Chicago (not North Mayfair) and was curious if anyone has a ballpark of what we should expect on a 2 bd, 1 bath unit? The current tenant (we inherited a lease) is likely to move out at the end of his lease in March and it's difficult to get comps as I'm not seeing similar units. The lease is at $950 but I'm thinking around 1200 for the unit in the current condition? Free laundry in basement, no parking, central air, unit needs some updating and we are going to put in some lvp once they leave. 

My wife and I recently bought a three-flat that we live in. We inherited one lease for one unit while being able to remodel and rent out the other unit. The unit above us is a two bedroom one bath where the current tenant has lived for 6 years. The unit is in "okay" condition and current two-bedroom units on our block rent between 1200-1300. The lease we inherited was at $875 a month. I informed the tenant we would be raising the rent to $950, believing this is quite generous considering the comps. The tenant has tried to haggle the rent down but I have stayed firm. My question is, should I write another increase into the renewal lease? I would like to be upfront and do not want to go through the "haggling" every year. I currently have put a five percent increase in a renewal for the lease. Strategies? Suggestions? Is this reasonable? 

@Anthony Wick couldn't agree more. Thanks for all of the advice! 

My wife and I recently purchased a 3 flat in Chicago. We have done some major remodeling to our unit (now a duplex to the basement) and also the top floor unit. When we bought we inherited a lease for the 2 bedroom, 1 bath with ample storage and an enclosed back porch. Many realtors have informed us, and I have confirmed, that $875 for a 2 bedroom in our area is far below market and almost laughable (we had no issue renting out the top unit at $850). My wife and I love the 2nd floor tenant as they are great and quite easy to get along. We are hoping to raise the rent to $975 for the current tenant when the lease expires in March (still below market and we should be able to get 1100). My question is what is the best way to go about this while still being respectful and not incurring any backlash? We are thinking of having the discussion soon to give ample time to set up a move if this were to happen. 

Probably thinking too much....

Jason