As new owners, how to raise rent for a long-term tenant?

[Cynthia Oistad]

We are purchasing a 2BR/2BA single family rental in Las Vegas from my family.  The current tenant has lived in the house for about 7 years now and have been on a month-to-month agreement since 2012.  My family has increased the rent for this property ($25 every few years) over the rental period.  Current rent is $900 month.  Last rent increase from $875 to $900 was in January 2017.  As the new owners, we would like to rent the property out at $950, but we also want to keep the existing tenant who has been excellent and not start relationship off poorly.  According to rentometer.com, Median rent for that size of property and zip code is $960.  Average rent is $995.   Should we bother raising rent or keep consistent with previous increases and only raise it $25?  We would sign a new contract with her as the new owners.

 thanks for your help! 

[Bill B.]

you’ll lose 3 years worth of your $25/mo increase if they move out and it only takes 4 weeks to turn a 7 year rented property and find a new tenant. And that doesn’t count the 3 more years or more to cover the rehab costs. I’d say no vacancies for 7 years is worth at least 10% under market. I assume 90% of landlords on here would take 90% of fair market for a guaranteed 7 year tennant.