My leases end soon, looking for advice

[Amy Engelhard]

Fellow NEPA Investors,  

I currently have a 3 - unit multi family in Dunmore, PA.  I have owned it since June 2018 and all of my leases are ending March 31st of this year.  My leases / tenants were inherited...

some info about the property:

each unit is 3bed/1bath ~1200sq ft each

basically no updates have been made since the 50's?

Tenants pay Electricity

Owner (me) pays: Gas (heat ~$290/month avg), Water - ~$420/month, landscaping/snow removal ($40-$80/month)

Question 1:  What do you think is a fair rent increase or fair rent for the area.  Keeping in mind that I would much rather them stay then have to turn over a unit.

Tenants currently pay: 

Apt 1: $575/month +$25 pet fee + $100 for use of the 2-car garage.  Tenant has been there 12+ years

Apt 2: $625/month.  Tenant has been there 1 year

Apt 3: $600/month.  Tenant has been there 9+ years

Question 2: Should I include the washer and dryer?

The washer & dryer was provided by the original owner (for all 3 units!).  It's in their current lease that the owner (me) is responsible for all repairs.  They are at LEAST 20 years old and are all about to die.  From what I've seen in the area Washer/drier are not typically included.  I was thinking to not include these as an owner responsibility moving forward..  Thoughts appreciated on this.

Question 3: Anything you would include in the lease beyond the standard lease agreement?

I've downloaded the bigger pockets lease agreement for Pennsylvania.  If anyone has used this, do you think there is anything to add? 

Thanks!

[Adam Guiffrida]

@Amy Engelhard, your leases are super low.

Fair market rent for Lackawanna County for 2019, recently dropped. It is at $1007 for a 3 bedroom and this includes ALL utilities paid by landlord.

https://www.huduser.gov/portal/datasets/fmr/fmrs/F...

In my opinion, I would subtract $50 off the rent for electric since you pay all other utilities. Make tenants pay electric.  So your rents should be around $900-$950 for your three bedroom units. You might want to increase your rent one unit at a time. You will most likely lose 1-2 units worth of tenants, but some painting and a few upgrades should give you the edge to re-rent the units at almost double the rent. March is the start of busy season, March and April are great months to rent units!

Lastly, if you have a washer and dryer in the building and you are paying the electric, water, and gas on, it is a no brainer to keep them. I suggest these:

http://www.mqtekindustrialsupplies.com/SMARTCOINBO...

You can make additional income on the laundry. And it will help reduce the utility costs on the building. If tenants have to pay for laundry, they will use it less. Keeping the coin boxes cheaper will still offer tenants a bargain, considering laundry mats are probably $5-6 per load.

Hope this helps!