How Did You/Do You Raise Rents On Small Multifamily
I purchased a 9 unit multifamily in Tacoma last year. Almost all the units are below market rent, especially considering the recent improvements. The only unit that is not below market rent is the one that we just rented out this month at full market rent.
The previous landlord did not go up on rent for YEARS. Some people are 10 year plus residents, probably in part due to the cheap rent.
My property manager has suggested that I send out a letter at the beginning of March describing what the rental increase will be and that it will be effective April 1 and require a new one year lease (6 tenants are on month to month) his reasoning is that if we are to have vacancy it is best in the spring/summer. I agree with him.
How have y’all done this? Did you go up to full market rent or some portion thereof for existing tenants? Can anyone share with me a rental increase notification letter