Haven't Closed yet. When do I raise rent?

[Michael Healy]

I am in the process of buying a rental property with a tenant already in it. Getting it at a very good price, but I believe the rent to be low. Its at $998 when I think it could be $100 to $200 a month low. The tenant is section 8. This is my first rental, so I'm wondering when I should request a rent increase. Any help would be greatly appreciated. THANK YOU!

[Don Daniels]

Hi Michael, When purchasing an occupied property the new buyer assumes the existing lease. You'll want to get a hold of that before buying to see what the terms / conditions are of the current occupancy. Except for odd circumstances you're obliged to the current rent until the lease is up. Keep in mind that you'll owe the security deposit back as well - may want to get that from the seller as a part of the purchase. You'll want to raise the rent annually to match current market rates.