Raising Rents on New 4 Plex in Colorado

[Russ McKelvey]

Hello BP.

We close on a 4 Plex in Colorado Springs on Friday 28 JUN 13. The appraiser and agent both think we need to raise rents from $800.00 a month to 850 or 900 a month based on market rates.

Three tenants are on month to month leases. How much notice is required and how to the notices need to be delivered to comply with Colorado Law?

Any other advice from seasoned Colorado investors?

Thank you for your time.

[Russ McKelvey]

Wanted to close the loop and let everyone know how this is progressing. We met with all four tenants and I am so glad we waited to meet the last one because she was out of town before making any decisions.

We decided to first offer to renew lease for the newest tenant who was paying the highest rent with no change and kept at 850. She also referred some people to look at our home in Woodland Park because they were looking. Mentioned a leaky bathroom faucet, toilet flap needs replaced and wants a ceiling fan (very easy.)

Then we offered the 3 and 4 year tenants to renew (staggered in OCT and NOV with a 25$ increase this year and thanked them for their long term tenancy and how well they take care of their units.

Instead of offering rent hike to last we just terminated the lease 1 SEP so we can move in and satisfy loan requiremnet. Unit needs most work and she had a laundry list of minor complaints. Also was a day sleeper so made maintenace and repairs difficult. She planned to move out in 9 months out of state as well. We will move in, fix this unit, move out in year and lease for going rates.

Thank you all for the great advice.