Increasing rent as a new landlord....

[Mura Octelene]

Hey, I am getting ready to close on my first duplex this upcoming month. It is already tenant occupied and they are paying $300 below the average rent in the area. How would I go about raising the rent amount closer to the average, as a new owner/landlord? 

[Carl Millsap]

@Mura Octelene are they currently on a lease or are they month to month?

If their lease is still valid ie. it was signed October 1, 2020 and expires September 30, 2021 you can't raise the rent until the lease expires.

If the lease has expired and they are on a month to month lease then we provide 60 days notice that rent is going to increase. 

We send a letter that states something to the effect that their current rent is $300 below market and it will increase by $XXX amount starting May 1, 2021.

As a new owner, make sure you address maintenance issues etc. before you increase rents. Just a recommendation. 

Also, I see you're in New York. Not sure where the property is, but check your local laws about rent increases. In some high cost of living / renting areas rent increases are capped. You don't want to run into problems out the gate. 

Congrats on your purchase.