How to raise rent?
I bought a town home where tenants' rent is way below market. It is a 3/2.5 occupied by three graduate students. They are paying $830, but market is about $1,100. I need some advice about how to raise the rent. Although it is a apt lease, the prior owner allowed them to bring in others as students graduated. So, they won't all graduate at the same time. I don't want to kill them but I want to incrementally get it to market rent. One thought is to raise it on lease renewal somewhat but tell them that if a new person moves in, their rent won't be the same and as each moves in, charge them market rent. I have some concern about doing that though because as I stated, it is not individual leases. Lease renews July 1.
Any help would be appreciated.