Hey everyone—looking for some level-headed feedback on a rent increase I’m planning.

I have a 7-bedroom, 4,200+ sq ft home in Snellville/Loganville GA area. It was originally my primary residence, but I had to move in 2012 when the property was underwater. Rather than go through a short sale, I kept it and rented it out. The same tenants have lived there ever since—just over a decade now.

The home has been cash flow negative the entire time. I kept rent flat for years—mainly because the market was still soft when they moved in after the 2008–2011 crash. I didn’t begin raising rent until 2020, and since then I’ve increased it at each renewal—but it’s still well below market today.  The last increase was nearly 2 years ago. 

Currently, they’re paying $2,620/month. I’m proposing:

• $3,100/month for a 12-month lease, or

• $3,200/month flat for a 2-year lease

Last year, I invested nearly $40,000 in capital improvements, including:

• A new roof

• Two new HVAC systems

• Sewer line work

The proposed rent would put them toward the low end of the current market for homes of this size in the area. I’m trying to strike a balance between being fair to long-term tenants and finally moving this property toward financial sustainability. They’ve mentioned an eventual interest in buying, but there’s no firm timeline on that.

I appreciate the feedback.  Thanks in advance.