Increasing rent from $1,245 to $1,445? Remove tenant or offer?

[Lawrence Paul]

Hello again, BP.

So, I have not raised my rents in roughly three years, but really feel the need to increase rental prices now after looking around.

Currently at $1,245 for a 2 bed 1.5 bath 1060 sq ft flat in a B+ to A- location.

Should I offer the increased price of $1,445 to the current tenant or remove them for minor renovations before renting back out?

Slightly nervous that they might get angry due to a $200 rent increase and potentially damage the unit.

What are your thoughts? Do I need to give them any paperwork as to why I would not be renting the unit back out (PA)?

Thanks for any and all replies!

[Bill B.]

I’ve had 4 rent increases this year. 2 x $150, $175 and $250. None of them blinked. Their only concern was I was also changing them from annual leases to MTM and they were afraid I planned to increase the rent again in a few months or evict them. After assuring them the rates would be valid for a year if they made all payments on time they were all fine with it. There’s plenty of inflation and zero inventory.