Just closed on four-plex and meeting with existing tenants....

[Eddie Sorrell]

Hi All,

We just closed on our first buy and hold property, a four-plex. The units are currently rented, but way under the market price. I reached out to each of the tenants, confirmed they are interested in renewing for another year and let them know we will have a new lease agreement and rent increase considerations. I really need to increase the rent by 18% in order to meet my ROI numbers and to get closer to the market. Any suggestions as to how any of you have approached this in the past. I realize that is a large increase ($100) just to kick-off our landlord/tenant relationship, but this is a business after all. Suggestions?