Rental Management: Increasing Rent

[Chris C.]

We just hit 6 months with our first tenant in a 1 year contract. Most likely she will renew.

2 questions:

1. How do I decide how much to increase rent by? Our rental is in a great location and I want to make more profit the next year but don't want to overcharge.

2. The tenant assuming responsibility and paying works from home. She said it would be her, her son, and a couple of his friends all living in the same house as they go to school. We had all of their named recorded on the lease agreement. Our property manager checked up on the house and said that it appears that she is no longer at the house and its just the "kids". We met her and her son in person at the beginning of the year so we know she at least started in that location. The house is still in great condition but our manager also saw a bong in the storage shed outside. The lease says no weed and it was assumed she would be living on the property. Is this grounds for increasing rent, or should I bring up this issue separately? They are great tenants but I also don't want to just let those two things slide.