Rasing The Rent

[Guevara M.]

I've had the same tenant in my small 1 bedroom, 1 bath townhome for aout 6 years now. She's never gave me any problems. I've only rasied the rent once since she has been there from $525.00 to $565.00. I just found out last week that I am charging about $100.00 under the average rates at this complex. Since she has lived there I have replaced the water heater & complete a/c system. I plan on replacing the old worn out windows with new ones next. The landlord downstairs from me is renting her same unit for $675.00. What is the best way to go about rasing the rent on my current tenant? She's been doing month to month, no lease agreement.

Thanks!

[Raymond B.]

Guevara Mike,
I know a landlord who raises the rent almost every year.
He maintains the properties, and has a lot of long term tenants.
The raises are only $10 or $20 each year, and the tenants know that they can expect a yearly rent increase.
Most tenants would not consider moving, as the cost of moving would be a lot more that the monthly rent increase.

By doing that, he is NOT in the situation that you're involved in now.

Raymond