under market rent options

[Dave Charron]

I have an 8 unit under contract and expect to close within a few weeks.  (its 2- 4 plexes)  Owner has owned for 15 years and pretty much does not raise rents after someone has moved in.  Rents are anywhere from $150 to $225 under market and some have been there over 5 years.  These are 1BR apartments in a fairly small town on the outskirts of where I live.  Condition of them is fair to good, as he does keep them in good shape but no complete remodels in many years.

I would consider it a C class property.  Nowhere near D, I know as I have owned them many years ago!!

Looking for some advice on how to smoothly come in and raise rents up to market level?  Thanks in advance! 

[Mike Dymski]

If you don't plan to renovate, increase $50-75 per year at lease renewal.  If renovating, go straight to market rate.