How to Rase Rent on a Good Commercial Tenant?

[Andy LaVoy]

I had an eviction 2 in a commercial space ($900/mo) followed by about 6 months of vacancy. That really hurt, and I was desperate to get a new tenant in, so I rented to them on a 1 year deal for $600/mo while they tried to start up a new business in the space. It probably wasn't my best decision, but this is my first property. The new tenant has been great, and I'd love to have their new business thrive, but I can't help but feel that $300 missing every month. He took me up on the $600 rent immediately and even offered to pay our shared trash bill, so I think he knows he's renting under market. What do you suggest for trying to renew him at a higher rate for next year? 

[Kelly DeWinter]

. review the current market paying close attention to DOM.
. if it looks like you can rent it within 4 months you will break even
. if you want to keep the tenant propose a multi year lease with incremental increases until you reach the desired lease rate.

Most start ups fail within the first year.

Next time you rent review the financials before you lease to get a better quality tenant

In the mean time pursue the former tenant for the back rent plus court costs.

I have a friend who makes more money from former tenants than he's ever made renting his commercial property.