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Updated 7 months ago,
Rent Increase Etiquette?
Hope I am posting this in the right forum.....
I purchased a house with an existing tenant. They had no lease in place, but have been paying on time. It has been 6 months or so, and I want to get them on a lease, and adjust the rent for market conditions.
They currently pay $1,500/month, market for this small house is $2,200 or more. $2,500 for an updated place / fresh paint & finishes.
The house is not updated, and could use paint, etc. so I am reluctant to adjust too high too quickly. I cannot really get in there to freshen up the place while it is occupied.
Is there an acceptable max percentage to increase rent? I feel like telling them we are going to $1,800, and note in the lease that the rent it will increase $100 each year after that?
How much notice do you provide when increasing the rent? Is two months notice enough?
Any feedback will be appreciated - Thank you