Question about rent increases

[Justin Pereira]

Hi Bigger Pockets

 I bought my first multi family in April. I inherited the first and second floor tenants. First floor pays 1100 and second pays 800. Market rate for this two would be 1300 and 1100. There were some issues with the house I took care of that benefited those two units. I was thinking of raising rents 50 dollars per month per year. But I’m not sure seeing as I’ve never done this before. The first and second are family and handle snow and grass. They also use the basement and garage for storage. Some have suggested as little as 25 a month and some have suggested getting them right to market rate. The market in this area is going crazy and similar houses are selling for almost 100k more than this same time last year.  Any feedback from seasoned landlords would be appreciated.