Raising rents!
Hey everyone!!! I just put an offer on a 4 plex in Paso Robles Ca.... The rents in this area should be at $1250-$1350 a month per unit. My dilemma is this. One unit is renting for $1250 (which is perfect), one unit for $1070 and the other two are at $990... How do I go about raising the rents without freaking the tenants out? I want them to stay but they are paying way to little!!!
Someone, please first tell me how I would raise the rents? I don't even know how to tell the tenants... Do I mail them a letter or have them served? I'm super confused here... Then what's a good way of structuring the amounts without freaking them out? Should I raise the amounts in $100 dollar intervals over a 2 year period? I really think this property has potential but am afraid that these tenants are so used to paying so little in a growing economy. Especially, since everyone in this town is paying so much more.
Thanks :)