How Do I Go About Raising the Rent

[Connor Kerr]

I'm in the closing process for my first RE deal! It's a house hack duplex to get my feet wet. One unit is occupied and the other is vacant which is perfect. The current tenant has been living there for six years. Her rent rate is $525 a month for a 2BR, 1.5Bth. I checked the local rates in the area and the low end is $700 a month. Do I literally show her the local rents or do I just tell her straight up "this is what the rent will be. If that's not something you feel comfortable paying then you have 30 days to vacate". I'm curious what some of your answers will be. Thank you.

[Dick Rosen]

You don't have to give any reasoning for it and we never do. We send a letter offering the tenant a new lease term with a new rate. We expect it to be signed and returned 30 days prior to lease expiration or they must give us notice to vacate 30 days prior to lease expiration or if they do nothing they will become MTM tenants with a xx% MTM rent premium. This is all explained in the letter which we send out 60 days prior to lease expiration.