What's a reasonable percentage to raise the rent?

[Stacey H.]

We've taken over a property that my father-in-law owned, and he never raised the rent for the tenants. The home has now gone up quite a lot in value, but the tenants are still paying the same monthly amount. Their rent has been $1,625 for several years, while the Rent Zestimate is now $2,335. We'd like to raise it to $1900/month, which is about a 17% increase. Is this on track?

[Benjamin Aaker]

Depends on how much interaction you have needed with the tenant. If you really want to keep them, then discuss the rents and institute regular rent increases until you get to market rent. If that doesn't work out, bring it up to market with the understanding you will be searching for a new tenant.