Increasing below market rate rents

[Monika V.]

Hi everyone! 

I have a family member who inherited a portfolio of houses in the bay area. They are all located in the southern peninsula within 1 neighborhood. This is great! The not great is that they are rented for an average of $850 below market rate. The range is about $400 - $1400, with about half of them around $1000 under. 

The plan is to increase the rent for tenants $1,000 under by around $800. The others would receive increases in a similar ratio. This is a huge increase, but still leaves the tenants with a discount. Has anyone else encountered this situation and taken similar action? What was your experience?