Yearly Rent Increase Schedule for Tenant

[Deinno OKeefe]

I purchased a duplex and inherited a tenant that was paying well below market prices. Because it's a family, my plan is to increase their rent each year until at market average. My question is this: would it be a good idea to create a simple document showing the year and rent increase and go over it with the tenant? 

Caveat: I will be doing upgrades, etc throughout the years to justify the increases. 

I am not opposed if the document causes the tenant to move out early. (They are month to month)

thank you!

[Theresa Harris]

Keep it simple.  How far below market value are you and are they good tenants?  They will know if they are paying below market value.  I wouldn't do any renos or upgrades while they are occupying the unit-wait for a turn over.  Also find out if you have caps on rent increases.  I'd increase the max allowable each year because chances are with caps on rent increases, you will quickly fall further behind.