Raising Rent as New Landlord
I'm in the process of purchasing my second rental property with a tenant already on the condo. He pays $825 a month but the typical rent in the neighborhood is $875 and up, plus he has a garage which most of the other condos do not have (so he has a really great deal going for him).
I want to raise the rent to $850 immediately (given 1 months notice) and then raise it again to $875 next year when his lease expires in May. Is it bad practice to raise rent on a tenant when you first purchase s property? I fee bad for the tenant bc he already had an agreement with his (soon to be) previous landlord and he has no control over the fact that the condo is being sold to another owner. Should I just let him keep his rent at $825 until the end of his lease since that's what he originally was promised or should I raise it to $850, considering what a great deal he has (and still would have)?
Thanks for your advice!