Increasing Rents on Section 8 Tenants

[Jake Didion]

These 12 units are all next to one another. Everyone is currently paying $450-$475 per month and occupy has always been high. The average renter has been their for 3 years. The market indicates that I can get $550-$575 for each unit. How would you suggest I make this change? How do the tenants tell section 8 that their landlord is increasing rents? Does section 8 pay for the increase without questions? Looking to make this transition as easy as possible for the tenants. 

Thanks for your help,

Jake Didion

Didion & Lemke Enterprises LLC

[James Mc Ree]

The landlord tells the tenant and HUD the new rent and effective date. It's as easy as that for communication of the change. HUD usually requires 60 days notice + to the end of the month for the new rate to take effect (notify Mar 2 and you can get it Jun 1). HUD will run a market and affordability test that must pass for approval.

I recommend starting small if you like your tenants.  Do $25 each annually until you catch up.  Consider $50 for rents that are far out of line.  It is easy to justify if rents haven't risen for 3 years as surely your costs have.  I usually do no increase until year 3, then $25/yr.