Raising Rent on Inherited Tenants?

[Kyle P.]

Hi All,

I have a two-unit property under contract right now that is set to be inspected in the near future. Baring any major repair requirements, I expect the deal to go through. Both units of the property are currently rented out; however, the rents are significantly below market, as one tenant has been there for 23 years and the other has been there for 6 years. The rents currently total $1,860, whereas market rate should be closer to $2,300 or $2,400. I don't want to be the new landlord who hikes the price on reliable tenants, but I also want this property to rent for what it should. Has anyone out there inherited tenants, and if so, did you raise the rents at all? If you raised the rents, did you do it incrementally or in one jump? For reference, the unit with the 23-year tenants is rented for about $300 below market rent (tenants are month to month), while the 6-year tenant is rented for about $200 below market rent (lease expires 03/2020).

Thank you all for any insights.