Security Deposits and Last Month's Rent

[Benjamin Dutil]

I'm getting ready to close on 2 duplexes that already have long-term tenants in place. I know that the deposits and last month's rents will be paid to me at closing however they are currently under market rents and I will be raising rents to fair market prices over the course of 6 months. The overall increase will be $200 per unit; $100 at the 3 month timeline and another $100 at the 6 month mark. Since their last months rent has been prepaid at a much lower price should they expect to pay me the difference? If so I do I break the news to them?

[Benjamin Dutil]

Originally posted by @Thomas S.:

Many states also only allow rent increases at 12 month intervals. When you are legally allowed to raise the rents do it in one jump to full market. At that time include the notice that they will need to top up their LMR. It's just business. 

 Thank you for your response. I guess I’m trying to be accommodating so they can adjust to the increase. I guess being the nice guy isn’t in my business’ best interest. I’m doing a house hack in one duplex and my neighbors are great so I guess I’m just worried that they may be forced to leave but I guess that’s just business. Thanks again for the good advice!