Just be sure to do your best to compare apples-to-apples, not just with beds/baths/sq ft, but also quality of finishes.Then present this info to the tenant and ask them what they think a fair increase is.Strategy is to show them they can't find anything else at the rate they are paying.Of course, at least 25% of the time they will claim they can't afford any increase.

At present, most MLS services have removed the BAC section and now it is presumed (but not required) that seller's offer buyer's broker commission (typically 2-2.5%).          

I also ask them for the forwarding address when they give notice that they are vacating the address and also give them a reminder notice of their right to be present at the close out inspection and ask them to tell me when the property will be completely vacant and a request of a date and time to have that inspection if they desire to be present. 

I'd present it to them at 35-40%, especially with all the POHs.  

Both during bull markets like 2014-2020 and during busts like 2009-2012 and 2022-present.

Broker presented to me.

@Tiffany Makiya- whats  present rate on 1st mtg ? 

Then each of them could decide to do a 1031 exchange, where they could take their share of the sale, and defer it into another property.

Build the property, rent it out for a couple years and then exchange it for other rentals to defer the taxes.

If the space being used is detached to the main living space, than that portion is considered investment and you could do a 1031 exchange and defer all the capital gains tax on that portion and still take the primary exemption.