Increase Rent by How Much?
I have a suburban Chicago townhouse that has been rented by the same family (good tenants) for nearly two years at $1625/month (I did not increase their rent the second year). The tenant prior was paying in the $1500s. Two years ago $1,625 seemed competitive and even my listing agent thought it might be slightly high. Since then rents have escalated -- in the last six months, ALL (16 total) 3 bed / 2+ bath rentals within that area listed in the MLS rented for $1850 or more with an average rental price of $2,050.
Although I just saw Lawrence Yun, Chief Economist for the National Assoc. of REALTORS, post: "Apartment rents had soared but are calming down back to earthly levels and could even fall by next year as abundant new supplies of multifamily units are under construction."
What would be a reasonable amount to increase the rent this year? I'm thinking $150.
Thank you in advance.