how much to raise rent

[George Cocokios]

Have a rental property in Phoenix metro area.  Rents have risen quite a bit in the past 3 years and i have not increased their rent but am considering raising it when it comes up for renewal this spring.  How much should I raise the rent  ?  I'm currently about $120 less than the cheapest rental on the market today but I don't want to freak them out with a huge increase.  Any suggestions on what to do ?

George.

[Jeff Schneider]

Truth of the matter is they probably don't want to move and would end up paying market rate if they did move. What's fair to you and your business would be to raise rent to comparable properties. If you feel like being compassionate and they're great tenants then you could increase to something that's less than market but gives you some increase. Just remember that no matter how nice they are, they're not going to help you pay for that new AC unit when the time comes.