How Much Should I Increase Rent?

[Roger Sands]

Hey fellow real estate investors! I'm new here. Nice to meet you all.

I have an SFR in Columbus, GA that rents for $1750.

1. How much is reasonable to increase rent? I was thinking an extra $25

2. Lease is up in June. When should I let tenants know?

3. Does it make sense to offer a 2-year lease at $1750?

I'll be asking my property manager these questions but, it would be nice to get a few other opinions.

Thank you in advance!

[Bill B.]

1) Do you really believe rents have only increased 1% YOY? That’s not good. 
2) $1,750 for 2 years means you think rents will increase 1% or less over 3 years. (From a year ago until 2 years from now.) if that’s true, it’s long past time to SELL!

3) what’s the smallest increase you would do the work of finding a new place, go look at it, pack up your entire house, take a day or two off work to move everything, transfer all the utilities and mailing addresses< etc etc etc? If you can physically afford $50 or $100/mo more is there ANY chance you’re moving over $50 or $100? anyone that moves over that amount was moving even if you kept the rent the same. 
4) the reason you have a PM is shown by your question. This is how people who dont\’t have a PM are paying to PLAY PM. They dont have a clue what rent should be but there are saving 8% per month, even if it costs them 10-15% and they have to do all the work. 

You made the right choice and got a PM listen to them. If they suggest less than a $25increase for 1 year or $50 for 2 years, non-renew the lease and sell. If it’s $r0/mo for 1 year or $100/mo for 2 years at least things about selling. That’s less than 3% rent growth. I bet your insurance and taxes went up more than 3%. 

Good luck.