New multi-family property owner.

[Tony Clark]

Hello everyone.

I am brand new to owning a multi-family property and to this website.  I hope I am doing this correctly. :)

So today I closed on my first real estate investment property.  It is a 5 unit property that consists of 2 duplex's and a cottage.  In all it is 3 units that are 1/bed 1/bath and 2 units that are 2/bed 1/bath.  At this time all of the units are rented out and well maintained but they are being rented for well below market value for my area (Olympia WA).  I have 3 units that are on month to month leases and 2 units that are leased out through July of 2022.  

To give you guys an idea of what Im working with, one of the 1bd 1bath units is being rented for $650 a month and the other 2 are being rented at $850 each, while the 2bd 1baths are both being rented at $1000 each.  I have looked at comparable properties in my area and the 1 beds should be more like 1300 - 1400 while the 2beds should be 1500 - 1600.  

My question here is how would you guys approach raising the rents on these tenants by such a large margin?  I understand that its just business and it comes with the territory of property management, but I am wondering if you guys have any strategies or tips on how to soften the blow.