Raising rent on first purchase

[JD Mims]

Hi all! I am working on my first investment property purchase and looking for some advice from those who have traveled before. Buying a home in Ohio, current renter pays $1000 per month and wants to stay.

I want them to stay because they are a good tenant.

Spoke with my property management company and market rent is around $1200 a month.

I need to raise the rent to at least $1050 a month.. but $1150 per month is perfect for my numbers.

I know $150 per month is a big jump. What should I do? Can I scale it? Like some now, some in six months?  Should I just pick one number and let that be it?

wondering what others have done in the situation.

Thank you

[J Zev J.]

@JD Mims - there's a cost for turning over a property for a new tenant. Also, your pm probably has other fees for advertising and leasing a new tenant. I think if the current tenants are good and want to stay then a gradual increase will be good for both parties. Start with the $1,050 and then see what your pm recommends on how often to increase from there. This is assuming they're good tenants, pass background/credit checks, sign new leases with you, etc and you want to keep them.