How to raise rent in Bridgeport

Question

Hey everyone!!

I did it !! Pulled the trigger on my first deal!! Its very exciting and stressful at the same time lol

So heres my situation that I need help on.

I'm buying a Duplex in the Black Rock Area . Ill be living in one unit . The other unit is priced a bit below market. Its a 2 bedroom renting at $1250. Easily this can go for much more as ive seen some rented on rentometer.com  average $1450. Looking at the pro reports , some in the area have rented as high as $1600 a block away.

is there a limit Percentage or amount you can raise the rents when the leases are up by law ? Wanna know what im allowed to do . Not looking to get into any legal trouble.

How would you bring the rents up to full market?

Also any advice is very much appreciated to help out a Newbie!

Mathew Fuentes · Answer

Hey Filipe ,

After getting all sorts of numbers, I'll end up only going up about 2-3% when its time to renew. I see i have a decent tenant already in place and I dont want to scare them off by hiking it up like that.

Mathew Fuentes · Answer

@Jack Bailin  ,@Mike Wiesner,  @James Lapp, and @Craig Bellot Thank you everyone for your input. Its all greatly appreciated as I narrow this whole thing.  Ill definitely look into the city of Bridgeport and also consult a real estate lawyer.  I definitely don't wanna get into any legal issues.

Jack Bailin · Answer

Hey @Mathew Fuentes, congrats on your first deal! I myself am a new investor, I currently live in and rent a duplex in West Haven.

I feel like the answer to your question depends on if you’re willing to deal with potential turnover to get the unit up to market rent, or if you would rather slowly bring it up over a number of years while trying to keep the same current tenant. Personally I’m not aware of any rent control in the state of Connecticut, but definitely check with the city of Bridgeport first.

Filipe Pereira · Answer

Hey Mathew, what did you end up doing? We're still raising rents on some of our CT rentals, and while we haven't gotten a much pushback given no body really wants to move if they don't have to, your potential rent increases were way more than ours. We usually raise the rent $10-$20 a month at lease renewal, just to make sure we don't fall behind on the market.

In our area (Hartford county) that's usually equal to a 1-2% increase.

Craig Bellot · Answer

Hey Mathew,

Congrats on your first deal! That is so exciting.

I would recommend as a new investor to get a handle on analyzing the income, expenses and ROI of properties in Bridgeport, CT. You want the other unit to stay rented and not raise it too much too quickly.

You can use the Bigger Pockets calculators as well as Zillow to get data and analyze a few other rental prices.

I would discuss with a Real Estate Lawyer or Property Management company to find out the percentage amount allowable to be raised.

Let me know if you need any help.

-Craig Bellot

James Lapp · Answer

I don’t know CT laws specifically, but in RI where I bought a property with below market rents, I raised rents immediately upon purchase (30 days notice required for month to month tenants). I did not raise them to full market  but about 80% of market (they were about half of market when I bought). Put yourself in position of the tenant - unless they can find another below market unit or go live with someone else, they are better off accepting rent increase  than seeking another apartment. I also offered two options - a annual lease and a monthly lease (monthly at higher rate). Of course you have to be mindful of non payment risk particularly considering eviction limitations.

Mike Wiesner · Answer

Hi Matthew,

There is a legal limit for rent increases. That being said, depending on how you manage the situation, you can minimize legal issues. You also have the option of not renewing their lease (but it's literally impossible to evict in CT right now, so tread lightly with lease renewals until the Governor eliminates the moratorium).

Regarding rent, Rentometer is good starting point for market rents. But keep in mind, your apartment's condition, amenities and specific location also plays into the rental rate. Maybe the $1600.00 apartment has a brand new kitchen with stainless steel appliances, Central A/C etc... All that being said, you purchased in a great neighborhood and once the apartment is renovated, you should be able to attract a decent tenant who will pay market rent. Best of luck to you.

How to raise rent in Bridgeport

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