400%+ Rent increase

[Jack Forester]

Does this one belong to anyone here? 

http://abc13.com/realestate/man-fights-eviction-after-400-percent-rent-increase/1401148/

What's the most you've increased rent? 

[David Moore]

I raised rents on the four unit we acquired in February by $140.00 per unit due to sky high water bills and rents so far below market.  The existing rents are still in the lowest quintile for a 2 mile radius.  I'll raise rents another 100 next April.  In your market, rents at $1200.00 means you left a lot of money on the table, only going to $850.00.  Rents in a two mile radius of my property have a mean of $1050, with a range of $850.00 to $1200.00.  I am aiming for the mean.  Next April, I'm raising rents another $100.00.  A factor for me is not how the tenants feel about it.  It is the risk/reward of retaining the tenants I have.  When I raise rents, I send a letter explaining where my rents lie in relation to that 2 mile radius, so they are informed that they won't find a better deal.

My advice.  Next April, hike those rents toward that mean.  You will have the needed funds to maintain your building well, which is great for retention.  And making money off an investment is a good thing.