Raising rents on long term tenants?
I wanted to get some opinions on bringing rents up to market value. I’m closing escrow on a 4 Plex next week and there are two long-term tenants who are paying $995 per month. They have both been there for over 5 years. Market rents are now $1300-$1400 per month. I keep going back-and-forth with trying to decide what the best approach would be. A part of me would like to bring them up to market rents right away but then I risk the chance of one of them leaving and having to deal with turnover right away. Is it better to do a small increase and increase my chances of them staying?
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Even if you raise the rent close to market, is that still incentive enough for them to move? Moving isnt ever fun. Can they find something as nice or nicer for the same price or less?