Rent increase recommendations
Questions:
How often should I go up by $150? Every 2 or 3 months sufficient (like December 2023 or January 2024)
Does anyone have any other recs on how you would approach rent increase in this situation?
Back story below for context:
I’m new landlord to 4unit multifamily, hacking in one unit. 2 tenants have just moved out their units , which are about to be renovated , so I have to tread lightly to avoid completely vacancy.
Current inherited tenants were family to previous landlord in nice spacious 1200 sq ft nice unit currently paying $775 on month to month lease, which is WAY below market rate. They were paying $700 until Feb 2023.
Current market rate goal for local area is $1250. Which is still below market rate based on what they are getting compared to other places in areas.
Im giving options to inc from $775 to $1250 in October
OR
Inc from $775 to $975, with acceptance of gradually increasing to goal $1250