Jacksonville, NC: currently higher vacancy? Raise rent?

[Stan C.]

Dear all,

This is my first rental, so relatively a newbie here. A duplex in Jacksonville in a C-class neighborhood. Rentals in that neighborhood average $450 - $630 for similar 2-bedrooms. When I purchased the property it was rented for $700 because it was completely renovated. This was 1.5 years ago.

At the end of tenants' first year I didn't increase their rent because my PM adviced against it since the rent was already higher (due to perfect house conditions). So, one tenants rotated with no rent increase (as per PMs advice). Second tenant stayed but got no increase.

Another investor that I know (who's properties are very close to mine and in similar great condition and were also rented for $700) raised 2 of their units to $750. But then those $750 tenants moved out and they had trouble ro re-rent it for that price for 2+ months (and are still vacant).

Since then my PM has changed and the new one is also advising against raising the rent. They said that right now their company experiences 3 times higher vacancy rate comparing to this past summer.

Also I have to add that one of my tenants is always late with rent but had always eventually paid (plus late fees). Both tenants take well care on the properties. Their 1-year leases are up at the end of December.

So, what about the rule to increase somewhat every year? Should I increase just $10? $20? Or nothing at all? If it's already higher than average in the area, should I increase? If I increase too much, will I loose the tenants, which considering my friend's experience plus what PM said about vacancies at the moment which would be a bad thing ?

Is there currently a slight downturn in rentals in Jacksonville ?

Thanks!