When Do You Raise Rent over 3%?

[Ali Safavi]

Question for the group...

When it comes to raising rent on a tenant who's been living in a unit for a year or more, what are your determining factors (in areas that are NOT rent control)? Recently I've considered raising rent by $100 per unit, which would increase the value of my building by $100K. The building is in a hot area, so technically the market can handle the increase. Holding on to good tenants is always great, but when are you willing to risk it? 

[Theresa Harris]

It depends on what the current rent is.  3% on $500 is $15.  $50 increase on a $500 rent is a lot (10%), but on a $1500 rent you are at 3%.

What is your reasoning for a 3% increase?  Inflation rate, rent was below market value and you are bringing it closer to market value, huge increase in property taxes?