Newbie looking for advice on existing rental in Atlanta/Alpharetta

[Taber Roberts]

Looking for advice on when to increase rents.

I have two rental properties that were both at one time primary residences. The first is an older home located in a B/C area of downtown Atlanta (Kirkwood). I like the monthly cash flow vs my mortgage payment but when you add in longterm expenses and taxes its just above break even. I recently signed a new tenant (0 days vacancy) to an 18 month lease and increased rent from $1,450 to $1,600.

The second property is in the suburbs, again at one point a private residence and not purchased as a rental investment. It is a 5 bedroom SFR in Alpharetta, GA in a A/B neighborhood. This house is currently leased by a corporation for a VP. The payment comes in on the 5th of the month like clockwork. No surprises. It was originally set up as a 1 year lease, but has been month to month for the last 25 months. Over 3 years no vacancy. Cash flow on this house is negative, no question. ($800)/month without any expenses other than taxes factored in. Ideally we'd sell this house, but we are still slightly upside down.

My question is, should I risk losing a great tenant for increased rents? I feel certain the property in the suburbs should bring in an extra $250-$300/month. What other factors should I consider? Thanks a million!!