Raising rents - looking for your feedback

[Ernad D.]

Dear BP community,

I purchased a fourplex about two months ago.  We replaced the roof and completed all individual tenant repair requests that the previous owner had ignored for over a year.

When I purchased the property, my profit calculations were based on $675/mo rent each.  The issue is that I am currently receiving $625, $635, $650, and $695 (new tenant), averaging around $650/mo each.  

According to the leases, all tenants have not received a rent increase for a couple years and have been on month-to-month for a while.  All tenants pay rent on time and are good overall.  The building is in a desirable area and average rent for 2 bed in the area is $725, but mine may be closer to fair market rent of $700 because we do not offer in unit washer and dryer - we instead have common area with washer and dryer.  

My plan is to increase the $625 and $635 to $660 each and increase the $650 to $675. This would bring the total to nearly my target of $675/mo average.  I was planning on just explaining in my letter that I am increasing rents based on market rent and they are still paying less than fair market rent.

Here is where I am looking for your feedback.  What are your thoughts?  Is this too aggressive?  Not aggressive enough?

Thank you for your insight!