Advice on Raising Rent

[Amethyst Green]

Hello all, I know there's a lot on here I've filtered through on raising rent.  I have a strong pulse on the laws in my state and understanding the rules on raising rent (no rent control) That said, I could really use some advice on raising one of my tenants rent.  I have closed on my first duplex and the first time I'm raising rent.  One tenant will be leaving and creating a vacancy in January.  The second, will be a long term tenant, she has autopay and is low maintenance and do not want to lose her as a tendant.  

However, her rent is really low.  She is at $1100.  a month and market for the unit is $1650 .  

Could you all please share your experience, your advice would be so helpful.  

Thank you!!  

[Nathan Gesner]

Here's my experience:

$550 x 12 = $6,600 per year

You are subsidizing her rent by $6,600 a year. Every year you are losing enough to replace the flooring, paint the interior, replace the furnace, or replace the windows. Every two years you are losing enough to replace the roof or the driveway.

I think it's acceptable to keep rent 5-10% below market for a PERFECT tenant, but I don't recommend letting it get more than 10% below market. You're over 30% below market.

There are many, many excellent tenants that will pay market rate. You're essentially putting the financial well-being of your tenant ahead of yourself. I doubt you got into real estate investing to help other people get ahead in life.