Raising rent if tenant's kids move in
Hi everyone,
My tenant and his girl friend rent a 2 br unit at $975. There lease is expiring in July and they plan to renew. He informed me today, that due to circumstances with his ex-wife, his two young kids will be moving in. Basically, his kids will share a room.
This my first multifamily home so all these experiences are new to me. My thought is that I should raise rent since I pay for both gas heat and utilities (water, sewer, trash). The tenants pay for electric. With 2 additional people living there, I assume these costs will go up.
My question is: should I raise rent and by how much?
My first reaction is to raise rent by $25-35 per month.
I appreciate any advice. Thank you.
Jason