The Rent Raising Game
I know this topic has been approached numerous times, but I haven't been able to find a post with a similar enough situation to get a feel for what to do.
I recently purchased a duplex in Colorado Springs that needed some obvious work (inside and out). I have been trying to update, fix, and maintain as much as I can with tenants in place but of course I can only do so much (new deck/stairs, new tile and vanity in bath, clean-up yard, fix irrigation, etc.). Another large part of the updates will be the overall landscape but of course the middle of December is not the time for this in Colorado.
The duplex came with tenants in both units (Unit A: 3 bd/1bth, Unit B: 2bd/1bth) but their leases are expiring soon. They have been paying on time since I bought the property and have been good tenants; however, they both have cats and dogs, are smokers (outside), and the amount they are paying is ~$200 below market for unit A and ~$100 below market for unit B. The rent also includes a W/D in both units and all utilities (except trash) because the utilities are not split. Utilities for both units for the last 30 days was $250.
My conflict is this:
1) Raise rent enough to cover expenses and basically break even in order to keep good tenants in and avoid the turnover expenses.
or
2) Same as above but only until spring/summer when I can fix the landscape to attract better tenants.
or
3) Bring rent to market now (including utilities) and most likely lose tenants in the middle of winter. Will need to spend quite a bit to get the unit in good shape before renting again. However, the horrible landscape may still scare off good tenants until I can deal with it in the Spring/Summer.
So, looking for pro/cons of the above options, other options, or any other thoughts you have on the subject. Thanks in advance!