How to best catch up on rent?
I have a 3/2 condo that I'm renting out for $1460, the current zillow estimate to rent the property is at $1880.
Other comparable rents in the area by looking at craigslist is beyond $2k some of the 2/2 is at $2k level two this is in the SF Bay Area in concord, ca near the Bart station.
The past 3 years i have the same tenant and I only raised my rent by $70 I know I should have raised more. I guess I'm too nice.
I'm thinking what is the best approach to catch up on my rental rates.
Does this look outrageous? If I give the tenant these 4 options?
1. 12% increase if the tenant stays on month to month
2. 11% increase if the tenant stays on a 6 month lease
3. 8% increase if the tenant signs a 1 year lease
4. 30 days notice to vacate?
I read this style from one of the forum threads. I have an agent that looks for tenant for me for 5% commission on new leases on total lease amount, renewals like this he doesn't get anything I manage the property myself.