Rent increase at renewal offer

[Cameron Searle]

If you realized you were renting 275 below market value. How much would you increase current tenant at renewal time. I admit I have not been checking rates and tenant has been in home 5 years.

I checked comps and nothing available for what tenant paying now

[Andrew B.]

If the home can rent for full market right now, (i.e. no major changes needed to get to market) I would raise it to market immediately, but stay on the lower end of the range (market is a range more than a solid number)

If major updates are needed and I have reserves to pay for it, I would give notice and rehab while they are gone. Then put in a tenant at the higher end of the market range.

If I did not have funds for that rehab, I would go very close to market and get within $50-$100 of that range, then rehab once I had the cash.

Every scenario gets the tenant very close to market. he knows what market is, and he wont move to a similar property. Only way he moves is if he truly cant afford the area, but its not your job to subsidize his rent.