New owner seeks advice on how to raise the rent

[Account Closed]

We are out of state investors that just bought a triplex in Mesa, AZ. All three units are rented out to reliable long term renters (minimum 2 years) but are about $150 under rental market value. All the units are clean and do not need renovation (done in 2014). I am seeking advice on strategies to raise the rent but keep the current tenants. Thanks for your help!

[Jace Thornton]

@Kory Knapp

This is where you have to determine if the rent increase is worth the risk of losing the current tenants. If it is then in thing you can do is talk to them and let them know that you will be raising the rent 10% to 20% per year until the rent is at market value. If you like the tenants and don't want to run the risk of losing them then I would not raise the rents. One thing to keep in mind is that nothing will be changing for the tenants except less money for them to stay in the same place they have been living in for the past few years.

Let me know what you decide to do. Thanks and good luck.