Buying Tenant Occupied Property - Raise Rent?

[Robert P.]

So I am buying a 3 family property and they have been there I believe 3,5,10 years respectively. My question. Do I raise rents as soon as I hold ownership? Or wait it out and raise rents in the future. Market rate for the area is ~ $1,000 month. They are renting at ~800/month.

The property does cashflow without the rent raise, but I just think they are so below market value, I should raise them up a bit.

Thoughts? Will that ruin our relationship right off the bat? Is it smart to get it over with if I am planning on it in the future anyways?

[George P.]

you will ruin the relationship. i'd give them a timing plan..something like... these are the updates that we will be doing. this is how you will benefit. i will increase the rent in 6 months to 900. then in a year from that point, the rents will be market rent at 1k.

we would love you to stay, but are free to go too.