How does Rental increase work

[Brandon Wheeler]

When you are raising your rental apartment rent are you raising it up by the percentage of the current rent or can you come up with your own price based upon what you feel you should receive?

[Sean Lambert]

I raise mine a modest % of the existing rent.  I'm not going to jack up the rent and put the tenants in a bind, so they would need to find a new place.  Even if I'm under market value, I'll ease up the price through the years to catch up, while hopefully not causing a vacancy.

If a tenant moves out, then the asking rent gets moved to market value for the new tenant that we find.

There could be rules in your city or county that dictate a maximum percentage increase per year.