Brand new landlord Problems
I bought a owner occupied a 4plex. I live in the 2bed 2bath the rest are 1bed 1bath. Rents are unit 2 $550 unit 3 $600 and unit 4 $600. The are comps are $725 to $908. Units 2 and four lease has expired the end of the month or in December. This is based off the lease provided by the seller. My wife thinks we should raise the rent slowly over the next year. One idea is to raise the rent to $700 this would be the lower end of the comps this would lower the risk of losing the tenants that have paid on time the whole last year. The other idea is to raise the rent to to $875 this would be fair market rent according to HUD and section 8. I have $4,000 in reverse this would cover the $1,750 mortgage for 2 months first mortgage is due on March 1st. So my question is should I A raise the rent over the next year B raise it to $725 or C raise it to market rent of $875?