Long Term Lease Issues

[Joe S.]

Newer landlord here, and I am hoping to find some advice! We signed our tenant to a 3 year lease deal, which was great for us at the time - we had only lived in the home for 2 years, so a 3 year lease would keep us in the sweet spot of being able to 1) keep the home long-term or 2) still be able to sell it without a gains tax & gain 3 more years of equity in it. The problem is I didn't incorporate an annual rent increase - so now i am well below average rent only 1.5 years into it, and obviously property taxes will only keep going up. Do I have any options at all? The renters have been great, would love to purchase the home if we sell it at the end of the lease, and we have a good working relationship. Hope to hear some advice as a first time poster. Thanks! 

[Drew Sygit]

Quote from @Joe S.:

Newer landlord here, and I am hoping to find some advice! We signed our tenant to a 3 year lease deal, which was great for us at the time - we had only lived in the home for 2 years, so a 3 year lease would keep us in the sweet spot of being able to 1) keep the home long-term or 2) still be able to sell it without a gains tax & gain 3 more years of equity in it. The problem is I didn't incorporate an annual rent increase - so now i am well below average rent only 1.5 years into it, and obviously property taxes will only keep going up. Do I have any options at all? The renters have been great, would love to purchase the home if we sell it at the end of the lease, and we have a good working relationship. Hope to hear some advice as a first time poster. Thanks! 

 Check your state laws.

In Michigan, a landlord can raise rent, with proper notice, in conjunction with property tax and/or insurance increases.