Need help on increasing rents. New to landlording

[Nicholas M.]

Hi, I just acquired a duplex. I live in one unit and rent out the other. The other unit was acquired with a rent $400 below market rentals in the area. Im brand new to the game and I dont know whether i should just tell them im going straight up to the market price or slowly increase rent to the market price. They are prob gonna move if i go full market price. Should I slowly go up every month $50 or every 2 months or 3 months? or should i go full market price, have them leave, then try and acquire new tenants for the full market price? The tenants have been there for almost a decade. Anybody have any experience with this type of thing? im in a hot location that is pretty much zero vacancy. 

Thanks-

Nick

[Thomas S.]

A tenant that has been there for 10 years and is paying below market isn't worth sh*t. A valuable tenant is one that you do not have to  supplement their rent out of your own pocket.

Changing/finding tenants is a easy job and one which landlords need to learn to do. Any one suggesting keeping a tenant below market or slowly decreasing your monthly losses has zero business scenes. It irks me when lazy landlords suggest others intentionally lose money every month rather than taking care of their business.

If your intention in investing is to maximise your returns inform your tenant that they are below market and that you will be raisin rent 400/month in 60 days. This allowes them time to shop around and move or decide to stay. It also allows you the time to find a "good" tenant that respects the value of your property and will gladly pay market rent. 

You will be happier once you convert the property from a charity to a business and start making an additional $400/month. Get rid of the free loaders and start running a professional business.

Good Luck.