I have a long term month-to-month tenant that I would like to vacate. I would like to update the kitchen, etc. as it will bring in much more money once she is gone. She has never missed paying rent, and Her family has also outgrown the unit. Rent is undermarket as I did not raise as rapidly as I should have. Possible 500-600 more per month. She was originally Section 8 but has long passed that situation.

I would like suggstions as to how you may have accomplished this. I would give her until end of school year so as not to disrupt the children.

Just send a notice to vacate

Dear Mrs. Jones

Unfortunately the owner has decided to move in a different direction with this property. Please be advised that your lease at 123 Main ST will end on 4/30/2023 at NOON and will not be renewed. You have until this time to find suitable replacement accommodations and must be completely moved out on or before this date. The Rental Agreement calls for at least 30 days’ notice before terminating the lease and you are being given 3 months’ notice.

Your monthly rent payments are required to be paid until the end of your occupancy in compliance with the terms of your lease. Your security deposit cannot be used as rent payment at any time. After you vacate the premises, an inspection will be made to make sure that the premises have been cleared of all furniture and personal items and left in a clean and undamaged condition. All keys to the premises must be returned to the manager when you vacate.

Please call the office at XX-XXX-XXXX with your anticipated move out date. Move out instructions will be sent at a later date. Call again when you will be completely moved out in order to return all the keys, remotes, and garage door openers.

This letter serves as legal notice of termination of your Lease on the property you currently occupy. It is also intended to allow ample time to seek a new residence. Failure to comply with the above requirements could result in legal proceedings to regain possession of the property, which in turn may incur attorney costs and court fees that you would be responsible for.

I would like to thank you in advance for your help and cooperation and wish you the best of luck with your next home.

Sincerely

Peter Parker, Property Manager

This letter has been sent to the emails of record and via USPS priority mail.

--------------------------------------------------------------------------------------------------------------------------

Proof of Service:

The undersigned, being at least 18 years of age, declare under penalty of perjury that I served the above notice, of which this is a true copy, on the above-mentioned tenant(s) in possession in the manner(s) indicated below:

 I handed the notice to the tenant(s) or handed the notice to a person of suitable age and discretion at the residence of the tenant(s)

 After attempting service listed above, I posted the notice in a conspicuous place at the residence of the tenant(s)

 I sent a true copy of the notice in a sealed envelope via __ first class, ___ certified, ___ registered mail with the USPS postage fully prepaid, addressed to the tenant(s) at his/her/their place of residence.

 I sent a true copy of the notice via email to the occupants email addresses of record.

Executed on ___________, in the City of Brotherly Love and Served by Peter Paul @ Mary

I have a different take on this. The updated kitchen COULD get more rent, IF the landlord charges it. But, currently, the landlord has let tenant get way below market. And, the landlord likes to accommodate the family situation. So, the update will cost a lot, be outdated again in seven to ten years anyway, and will current building materials be better, more durable than what is there? And, will landlord keep up with rent increases in future?

I see myself a LOT in this situation. My houses are a tad bit below market, though maybe $200 below at most. ( rents have softened quite a bit recently.) I prefer to accommodate keeping kids stable. I have one house that definitely needs updating, as tenant was already in house when I bought the property, and that was years ago. Tenant thought they'd be moving out by January; their decision, not mine, as they need a bigger space. However, tenant is having tough time getting a better neighborhood, though the neighborhood they are currently in isn't so great either. But, current neighborhood is better than it used to be, as there are more stable, long-term residents compared to a few years ago.

So, for me, I've decided to just leave it where it is, see where it goes. I had a long list of things I wanted to do to update the property, even though I have already done a tremendous amount whilst current tenant is there. I gave that tenant a larger rent increase than others, to encourage them to be more diligent in their search, but I'm not one to be on the 'bleeding-edge' , rather prefer to be more middle of the pack.

So, for me, I have decided to just continue chipping away at my 'to-do ' list on this house, and, if opportunity presents itself, take advantage to get larger projects done.

Plenty in Mo, had an excellent story of how they gutted and refinished a bathroom when a tenant took a week-long vacation. Of course, a kitchen is a bigger project, but, if the supplies and tradespersons are ready ( in my case, me plus husband to help with wall cabinets) then it can go fairly quickly.

Sometimes, a few simple swaps, such as a new counter top, or adding a range hood, can give new life to a tired kitchen. Of course, all of this wouldn't maybe apply in a trendy market, A class property, attracting higher-end renters. But, you mentioned Section 8, so, I'm thinking maybe not. Mine are solid C class properties , in a fairly tough city, so, while tenants would love a new kitchen, they appreciate a bit more even that I keep things working and affordable.

some perfect ideas here already on how to proceed.

I don't get the disrupt the children? Are these your children? Maybe foster children or maybe you placed YOUR children with the tenant and that's WHY?

Are there no other rentals nearby?

Long term tenant that has cost you 600 X 12 months = 7200.00 times 10yrs.= $72,000.00 yrs --- maybe 20yrs = $144,000.00?

LOST. Not really lost-- given away!

I wouldn't do anything other than inch her rent up slowly. I'd raise her rent maybe 7 or 8% and keep up with incremental increases yearly.

If you spend $15,000 on updating and renovating (remember, because she is "long term" the place is going to look very tired when it's emptied out so it will be more than a little kitchen work), plus 2 to 3 months for the work and finding a new tenant, it is going to take you three-ish years to break even ... with unknown tenants....assuming you don't have a vacancy during those three years.

Your statement that her family has outgrown the unit is your opinion, not the tenants and certainly not the legislatures.

I'd increase the rent in steps and make it clear to her that you like her as a tenant but the property is well below market and you have to stay profitable to provide good housing.

If she can afford the higher rent, great! If not, she will choose to move.

I've been in a similar situation for a few years, but have been giving stiff rent increases so it's not been costing me anything. I would go max rent increases (allowable in your state/region) until it's up to the regional rate. They'll probably move, but if they don't you're just getting longer use of everything in the kitchen until the day that they do move out.

Recently I've been watching a plethora of financial webinars. Not knowing anyones age or financials, if you are paying for Medicare and receiving Social Security and deciding whether to spend a bunch of $ to get more $ when you have a decent tenant, figure out the puzzle. Taxes play a large piece in that puzzle. This year, we will be, if not already, on the edge of an upward tax bracket. If we breach that bracket, we lose approx $10,000 to healthcare, without even using it. And on top of it; a larger chunk of social security taxed. No more am I going to work like I did when I was 20, to give it away. I will take advantage of someone going on a vacation to get into a unit for upgrades that we can do as supplies and time allow.

I would rather do as BUSY, have a more peaceful tenant/life and plan from there.

If you are younger, building your business empire, by all means, do what you need to do.

Kay,

Booting them means more work and expense for you.

It will take years to recoup the investment in a new kitchen.

LLing takes COURAGE. A few years ago that was a theme at MrLandlord National Convention.(Hello J!)

That Convention gave me the courage to raise my rents. I I got home and sent out 64 letters, some with very large increases, and NO ONE complained.

It is what it is - raise the rent to a market amount with the existing cabinets.

Unless your cabinets are ratty, new cabinets will help market the home but they don't increase it's value much.

Be strong - YOU run your business!

Your Job 1 is to make your business profitable.

SPENDING more is not always the answer.

Give them the increase letter and see what happens.

BRAD

let's be honest, you would have to do way more than update a kitchen after a long term tenant vacates. To get market rent you will prolly need new floors, a stove? perhaps a fridge, and I bet the bath as water damage by the tub and/ or toilet and looks dated.

So how far under market, is on you and it seems like you are realizing you need the funds, or are missing opportunity. You might try Jeffry's approach, which is to write a letter asking them how much of a rent increase they can afford. The letter will put current market rate in it and say what can you manage. Search this forum for examples of the letter I mention. This topic has been covered every year.

Now think about the whole picture by factoring in let's say a 5-10K rehab w/ xx months to re-rent vs yyy rent increase keeping tenants in place with the goal of getting to market in 2-3 years. What monthly increase sounds acceptable to you? OR are you saying they will never earn enough to get to market rent and it is time to start over- which is it?

small taters. I suppose your last comment was directed at my post? Are you the person who watches TV when the commercial comes on with the St judes kids, or the puppies in the snow in crates or the Ukrainian Jewish holocaust victims? yada yada yada. Yes, we all have feelings, but we have a business and that business needs income to survive.

Not upgrading your properties is criminal in my book. You buy an investment to see it grow-- it can't grow unless it's watered. (upgraded/maintained) You don't need a convention to get the nerve to raise rents. Your suppling a service and that service has increases every day and every year.

Myob, I do keep up my units. It took seven years to work through them. I am now able to target the high end C tenant,from warehouse worker to hospital professional. My biggest fish was the head of one of the warehouses that did a 2 yr stint. I have 2 w long term tenants where the kitchens are older. In one I updated the flooring a few years ago. The other I have been more hands off but have redone the tub silicone 2x and replaced the bath fan. Neither place is run down. I didn't get the impression Kay let's things fall apart. In Kay's situation it really seems like the Q is can they afford mkt rent. Since Kay let things fall below mkt, I thought it is relevant to weigh the costs of starting over VS keeping the tenant in place. Brad said the same thing.

Tater wasn't bashing you?

She is from OH anyway. Where did you get court reference? she didn't mention it or eviction just end of M2M.

Several referenced cost of upgrading. Again the poster said she wanted tenant out so she could UPGRADE her unit. Some went way overboard on assumption from the original post....

Class C (Section 8) properties need three things:

1) Clean

2) Safe

3) Functional

Upgrades, renovations, remodels, etc cost a lot of money and yield very little added rent or value.

Most (almost all?) home improvements do not yield a net benefit. I forget where I saw it, but there are industry generated lists about the % return of various home improvements. The best is paint (80% or more). The worst are things like kitchens, bathrooms, and swimming pools.

The way to make more money on a Class C is turn it into a multi-unit, if possible. Or create a bedroom out of a too-large living room, family room, sunroom.

Remember: tenants do not care for a property like you do, even though I've heard many says, "I'll treat it like my own." Yeah... they treat their own stuff badly. Your "new" kitchen will be tired, worn out, dirty, and "used" within 5 years.

Keep what you've got, raise the rents, and if they move, then find a new tenant who will pay the market rent. The cost and risk of raising rent is negligible compared to a remodel.

You are giving up a great deal of money. Have you done a cost analysis on your expect rate of return? If you need to spend $20,000 to gain only $600, that answer is easy. But you are saying it could raise you an extra $7,200 a year.

Kay, Hoosier's post about Tenants Surprised! reminded me a a very good technique to bring rents up to where you want them to be- give two months notice , or even three months notice before the large rent increase takes place. That gives tenants time to look around, see that though the rent increase is higher than they are used to, its still not way out of line.

If tenants DO think they'll another place they'd rather rent, they have plenty of time to give you proper notice, and they can time it to accommodate their families needs, just by paying the higher rent until the time is better for moving. If they decide they aren't likely to find better for the money, or even as good as yours for the money, they'll stay. And you'll save the costs of time, talent and treasure that would be expended into a large remodel.

I usually give two months notice for rent increases, and, I often will mention improvements I made recently, and sometimes upcoming improvements. I am fairly comfortable doing rather extensive upgrades with tenants intact, though I do have to gauge the temperament of the tenant. So, it could be possible to get up to market rates, get the tenant out on their timeframe, or keep the tenant, and do parts of the rehab over time, all with just a larger rent increase, given with a longer timeframe to be effective.

If, however, there are , perhaps, other reasons to get a tenant out, such as fights, drug dealing, property damage, or just hostile personality, a hefty rent increase can work well too. But, not always. In the case that bad actors don't go with a hefty rent increase, give proper Notice to Vacate, according to your area laws. I am not required to give a reason, and have only had to do this once, and I did not give reason, though, when the tenant pestered, I did say the family members knew the reason. If the family members said they didn't know why, she could check police records. She understood. After I gave notice to vacate, I did not step onto the property again until they were out. But, Kay, I'm not presuming this is your situation. Just putting it there for others trying to get rid of dangerous tenant.