Rent increases percentages

[Cameron Searle]

Just curious what others are doing on rent increases. I am in Central Florida where rents for single family houses have gone up around 30%

Last year rent was 1650 on my rental. Comps are 2100 now. But for tenants that stay how much do you increase. I was going to raise to 1800 which is about 10 percent. Still much less then the vacant comps

[Greg M.]

You want to stay close to the market. The gas station doesn't sell you gas below market just because you bought there before. It's a business and you need to charge market rates.

Having said that, there is value to retaining a good tenant. There is a vacancy cost too. Therefore, a little under market works well. I try for 5%-10% below market. That is enough that the tenant knows they've got a deal and won't leave, while I'm not losing out on a fortune. 

In your case, I'd probably do $1900, which is a 15% increase.