Bringing Rents To Market???

[Cipriano G.]

So we just bought a fourplex in a great location and the rents are drastically under market per unit, literally half price in one of the units! The last owners never raised rents on the current tenants for the last 17 years!!!. My question is what would be a too aggressive schedule to raise rents to market considering the current conditions. Has anyone tried to raise rents in 6 month increments, all tenants are on month to month leases.

Appreciate any ideas.

[Colleen F.]

 Have you done an introductory letter?  I would do that first.  Also make sure your market rent is right based on the condition of the units.  Then give notice of the increase. You can rip the bandaid off all at one or you can increase the rent incrementally. As things are in most states now if they are way out of market consider stepping the increase. Some people show comparable per rent units in their area when they do this and make clear that you will be bringing rents to market level.  Keep in mind that if PA has alot of covid  moratoriums and courts are closed you may be better off if the tenants are paying to phase increases in.