Raising rents on long term renters

[Patrick Knapp]

Hey guys I am gonna be getting 4 properties that are grossly under market rent and want to get you option on how you would raise rents.

Units are renting for 600-700-750 and 900

$900 in on a lease so I can’t do anything about that one but others are month to month.

The three properties are long term renters that pay on time. But rents should be 1000-1200 for each unit according to what it should be.

I’m thinking of letting them all know once we have the properties that they get 30days notice that rents will increase to $1000.

My concern is how would you do it without coming off like a jerk? They know they have been getting a good deal, I would like to keep them as renters but rents are way to low.

What’s your thoughts?

[Kenneth Garrett]

@Patrick Knapp

A few thoughts; if you raise rents all at once without any improvements to the property, are you prepared to have vacancies.  The cost of the vacancy is not just lost rent, but all the improvements as well.  If they have been long term tenants, the rehab could be $5000 or more. I agree with @Bruce Woodruff raise the rents incrementally.