Plan for Increasing Rents?

[Joe K.]

I just bought a 4-plex and rents are all over the place. I'd like to get them a little more uniform and up to market rates. Purchase price was 600,000. Each unit is 3 bed, 2.5 bath, about 1630sq ft plus an attached 2 car garage. Definitely some of the nicest units in town. Currently, the rents are $1200, $1225, $1350, and $1550. I'd like to get everyone to at least $1500. My plan is to immediately move the three lower units to $1400, then in 6mos move to $1450, then a year from now, bump them to $1500 (leaving the one at $1550). At that point, I want to re-evaluate the market and determine if we're happy with that, or if there should be some small increases after. Does this seem like a good plan?

We're in a small town in Southern Illinois. Not many open places to rent - generally, if you have something available, it seems to fill up pretty quick.

How do you all handle increases on an ongoing basis? Do you leave rent alone if you have good tenants, or do you typically do a 2-3% increase each year?

Thank you!