How to increase rent DURING lease term?
Hi everyone,
I purchased a property where the rents are insanely below fair market rate ( 40-50% lower). One lease is up in a month so I don't have an issue there, however, the other side's lease will be active for almost a year, it was recently renewed. I was wondering if there is a creative (and legal) way to increase the rent to a more reasonable rate. After researching it, someone recommended to offer the tenant to raise it to 75%-ish of the market rate and lock them in for another 6 months or a year after their initial lease would end. Do you all have other ideas how it can be done, that's appealing to the tenant as well? I would prefer to keep the tenants, but the current rent just doesn't make sense financially.