Posted by Randy (SD) on January 31, 2005 at 13:22:23:
Keep the tenants… the first thing I would want to find out is if the tenants have a current lease agreement and how long they have been there. Regarding rent increases, if the current rents are substantially below market rents for the area (you can get 2005 fair market rent statistics from Hud: http://www.huduser.org/datasets/FMR/FMR2005F/index.html
Then make a decision if it’s better to have a vacancy or a possible good long-term tenant at lower than market rents. Also what is the rental market in your area, if there is a lot of rental property available meaning you have to settle for lower than for market rents, might as well keep the tenants you have.
I am in contract with a bank to buy a duplex in foreclosure. Both apartments are occupied and the bank does not have any information regarding the payment history for the tenants. Both rents are approx 200.00 below market rent. My questions are the following:
Would it be best to have the bank deliver the property vacant upon closing. They said they would if I wanted.
If I decided to keep the current tenants how much should I raise the rent at one time. I don’t think 200 dollars at once would be wise at 1 time. I was considering 2 six month leases with 100.00 increase with each lease. I will be upgrading both units to warrant the increase.
Should I do my own background screening of the current tenants.
I am a single woman and I want to present myself as the property manager not the owner.I want to establish a business relationship with the tenants from the start. Are there any suggestions or opinions on this approach?
This is my first investment property and I want to make the best business decisions possible. Any feed back would be considered and appreciated.
What’s the market value for your duplex? How much you buying for?.
Try to negotiate a rent $25,00 or 50,00 below market, there;s no need to give away 200 bucks a month if you are a strong rental market.You probably you gonna have a new contract with new terms,make sure you include the no dogs no smokers clause in you contract.
If you gonna upgrade the units it will be much easier to have them empty , work on repairing units its a pain with tenants inside.