Quote from @Nathan Gesner:
Your plan is to lose money, possibly create confusion and animosity, and eventually chase off the tenants that have been there the longest. I don't see how this is a good solution for you.
these tenants have had an easy ride for a long time and should be grateful for that. Instead, they are more likely to have a sense of ownership and entitlement. Any increase plan is going to upset them, not in deer them to you. Meantime, you will continue to lose money hand over fist.
be kind by giving them three months to find other arrangements, then remove them from the property, renovate before summer, and rent at market rate to tenants that are willing and able to pay what it is worth. That is the right decision. You do you.
Thanks so much For chiming in @Nathan! I always appreciate reading your posts and comments around here especially because we both operate in small'ish cities.
I hadn't thought about it from the tenants perspective fully. I can see how this might create confusion and animosity and they HAVE had an easy ride for a long time. Point taken there.
Your band-aid approach makes sense and I think you hit it right on the head saying 'Any increase plan is going to upset them, not in deer (sic) them to you.' But my numbers disagree with your " Meantime, you will continue to lose money hand over fist." part. Also, this is a house-hack (for now) and the attic unit, once we leave will bring in an extra $1100/ month or more if we Airbnb.
I acknowledge that there are stricter ways to do things and really appreciate hearing what those are. Thank you. I'll temper my plan with them and come up with something that will make me sleep at night, and make money.
And I'll do me ;-)
