to raise rent or not to

[Robert Churchill]

so I have been mulling this over for a few months now and read a lot of similar posts on the topic but have not really found a answer that really applies.

I will try and keep this brief

the situation

bought 4 SFR on one lot (found portfolio lending it) in dec of 14 for 235k all occupied but we will only focus on 2 right now

house A

current inherited rent 1100 for a 3bd good tenants pay reasonably on time by the 5th every month. semi retired been in the home for 7 yrs take really good care of the home and property but no longer need the three beds. now on a month to month with no rent increase over the same 7 yrs

house B

inherited rent was 950 for a 2bd on turn over I rented it in one week for 1150 per month to a solid tenant.  had over 50 people that wanted to turn in application.

the dilemma

I feel that the 3bd house a is probably under a reasonably conservative rent by 250mo its 3000 per year which is not a small sum. I do find it funny when people are worried about 15 extra a month but another story.

I would like to increase the rent to market I have come up with this plan which works into timing but it goes like this give them 60 days notice to a scheduled rent increase schedule. in 60 day rent would go to 1200 followed 180 days later by another increase to 1300 than in another 180 days the last 50 to a market of 1350.

now for the timing

march 1 I have a 2bd right next door opening that I plan to market it for 1150

so it boils down to letting them choose between downsizing to the 2bd or going with the 3bd with the rent increases.

currently there are NO SFR in my town for less than 1800 mo so there is a shortage of rentals which makes me think I wont have to much trouble renting 1 or both.

but there is still part of me that says don't rock the boat and wait until they move on but that may be  while so that's a lot of potential opportunity lost

what say BP about my plan. am I being Mr. Burns