How Much To Increase Rent?

[Spencer Krautkramer]

I know this is a controversial topic, but what are people's thoughts? If you inherited tenants with below-market rent, how much is acceptable to raise it if they want to stay? Are there any limits on price increases in the City of Milwaukee? This specific property is in Bay View for those local folks.

[Marcus Auerbach]

As tough as it is, unless you are a non-profit, market rent is the only correct answer. You can give them advanaced notice, but make sure this does not end in the extension game..

Ideally you use the opportunity to clean up and improve the units.

Rents in Milwaukee have gone up 4.9% in the last 12 months, which is pretty much in line with wage increases. We have a housing shortage, so the direction will not change any time soon. Inherited tenants are often difficult to work with anyways, so may not be so bad to cycle through.

We adjust rents in spring, but I would not wait for that. To a certain extend it is easier to find a new place now and in winter than it is in spring.

Rent increases are not regulated in Wisconsin (partially thanks to the RPA and their members), you just have to give them formal notice according to your lease and State law - best to use the rent increase from from Wisconsin Legal Blanks.