Rental Property Investor · Wallingford, PA · Member since 2017 · 33 posts · 2 votes
I have a tenant that is month to month, i bought the property march 11th and would like to increase the rent. He is currently paying 700 for a 1 bedroom. The average price of a one bedroom in the neighbored is about 950. Would it be reasonable to raise the rent to 100. He has been there 10 years and has never had a rent increase.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y
@Patrick Brodeur yes you can raise the rent. That is probably why you bought the place in the first place! I think a lot of investors get too stuck on how long a tenant has lived in the property. There are definitely cases where not raising rent makes sense, but I personally have been trying to make sure I am within 5% or so of the market rents if I am not raising them. In my world, that 1 bedroom would rent for maybe $915-925, so if I am at $900 I leave it alone. If I am at 700 with a new tenant, then I need to do a rent raise. If the tenant leaves, you probably will actually be in better shape than if the tenant stays as you can start fresh!