Raising Rent on Inherited Tenants

[Kodi Clark]

We closed on our first rental property last week 

We have inherited (4) tenants / (1) of the tenants is new (signed a 1 year lease in August) / however the other (3) are on Month-to-Month and well below market rates.

All 3 have been with the apartment for quite some time.

The market rate for this apartment is $700 / the apartment next door (just like ours) went up for rent (last month) and had 30 applicants in one day.

Exploring the area (Facebook marketplace / craigslist / Zillow / apartments.com) – I am unable to find anything like this apartment (at this price point)

With that in mind / I don’t see anyone vacating (as there is nothing comparable) (but .. who knows.)

I have already received feedback from one tenant, claiming that he and the other (2) units can not afford a rent increase.

The prices on the other units are: $500 / $535 / $595

The rents need to be at $700 / not only because the market supports it. But because I cant cover upcoming maintenance without it.

My limitation is the unknown. I don’t know what my existing tenants are capable of. Or the ramifications of raising rent.

I’d like to go about this the right way and was hoping for some feedback? How you would approach it?

Any Advise would be appreciated.