My tenant wants to move in his pregnant girlfriend what is an acceptable additional amount to charge ? . I havent raised the rent in the almost 3 years he has lived there , he currently pays $1K/mo for a large studio. I don't want to gouge him, it's Brooklyn , in an area that is slowly regentrifying, but rents are expensive and I suspect I'm actually below market rentwise
I'd also take a look at Craiglists and see what studios with similar square footage are. Take an average of what you find and that should give you a decent representation of what your place can rent for.
Depending on that number, you can adjust. If he's been great for 3 years, like you said, I wouldn't rock the boat too much...an on-time paying renter is the best thing you can have...but definitely do your research and figure out at least what your studio is worth.
Let me know if you have any questions!
@Tyler, thank you , I checked at rentometer, and it confirmed that they are getting a deal,the problem is like I said I am not sure what to increase the rent by for an additional person, but I thank you for your suggestion
You have made a huge error not raising the rent in three years. Tenants in NYC expect a rent increase every year. And that rent is extremely low on top of it. I would advise raising the rent at the next lease renewal to increase the rent to market value. The tenant will likely leave but there is enough demand in your market that you should easily be able to re rent the apartment quickly. You seem to be operating a charity instead of a business. Perhaps hiring a realtor to find a tenant would be your best option.
If you don't already have a policy, negotiate something with the tenant. First and foremost, you should require her to complete your tenant screening process just like anyone else. Second, the increase should be minimal for adding another resident and I typically don't increase the rent unless there's an increase to utility use that I'm responsible for.
Personally, I would screen her, add her to the lease, and then give them notice that their rent will increase to market rate at the next renewal. If they are on month-to-month, I would give them 60 - 90 days and then the increase.