Rent price increase question.

[Matthew Chalfant]

Rent price increase question. I currently own a duplex with both sides rented. The A-side is renting for 1050 a month and the B side for 1350. The first tenant was there when I lived in the property in 2019. I kept the rent low for an additional year because they were good tenants who paid the whole time through 2020 and have only been late twice and paid quickly. The lease is almost up and the PM thinks we can get 1300 for it. I have mixed feelings about raising the rent by 250 on someone especially when inflation is hurting blue-collar people more than any other. I am currently cash-flowing 810 a month and I would feel greedy raising it by 250. They are good tenants and I think that deserves to be rewarded. What are your thoughts?

[Mary M.]

So just for arguments sake - say the OP increases rent by 250/month and tenant leaves. they will have at least 2 weeks of vacancy , the cost to release, the cost to clean etc....  so 675+1350+500=2525 of very conservative expense....   the increase of rent of 250/mo is 3,000 for one year. this is a real increase of 475 .  If the Op had just raised the rent say 150/month they would of gained 1,800 in the first year.  

It is always best to do the actual math.