Raising rent if tenant's kids move in

[Jay Elvin]

Hi everyone, 

My tenant and his girl friend rent a 2 br unit at $975.  There lease is expiring in July and they plan to renew.  He informed me today, that due to circumstances with his ex-wife, his two young kids will be moving in.  Basically, his kids will share a room. 

This my first multifamily home so all these experiences are new to me.  My thought is that I should raise rent since I pay for both gas heat and utilities (water, sewer, trash).  The tenants pay for electric.  With 2 additional people living there, I assume these costs will go up. 

My question is: should I raise rent and by how much?  

My first reaction is to raise rent by $25-35 per month. 

I appreciate any advice.  Thank you. 

Jason

[Samantha Klein]

Despite what people are telling you, you can raise rent on a new lease once it's expired. You can't change the existing one unless the tenants agree in writing as an addendum but you certainly can say "due to increasing costs, rent will be $x.xx" and sign them to a new lease, most landlords raise rent at lease renewals regardless of additional occupants. If they don't like it, they're free to find another place to live.