How much should I charge the Rent?

[Fahadbin Alam]

So I bought my first property and this townhouse already has a tenant in it. They pay 976 and I want them to sign a new lease of 12 months for 1300. Is this a good thing? the townhouse has 3 bedroom and 1 bathroom and I'm thinking of adding another bathroom. My agent told me the people there have been living it good, so it would be wise to increase the monthly rent. I do trust my agent, but I also want opinions from the Bigger pockets community.

[Theresa Harris]

How did you come up with the $1300 number for rent?  Look at what the comparable properties rent for.  Also check if there is a limit on how much you can increase the rent and if they are currently month to month or under a lease.  If the latter, you need to wait until that lease expires.  If they are good tenants, raising the rent over $300 will probably cause them to leave.

As for adding another bathroom, wait until the unit is empty.  Doing a major reno like that when it is occupied is asking for trouble.  Also check out how much it would cost and how much extra rent you'd get as a result.