How to Ask Current Tenant Rent Increase

[Kathleen Park]

Hello,

I've recently bought a 2B condo near a college in Chicago with the condition of taking over the existing lease contract with the tenants. The tenants are two college students and the lease ends at the end of August. However, the rent they are paying is too low (approximately $500 cheaper than the average in the area, and the previous landlord didn't even collect a security deposit or pet deposit even though they have a pet. The tenants pay on time, and they keep the place neat though. They need one more year to graduate.

1. Is there a magic way to ask rent increase? To me, It seems hard to ask current tenants about rent increases, especially when they are students.

2. Do I need to consider rates near college town lower than the others in general? This is my first property near a college.

3. Any general advice on rental management for college students?

Thank you for your time.