I'm thinking of increasing my offer a little just to see if they will counter.

Also, how much are others increasing the rent yearly?

I would obviously look to first get those apartments rented then increase rent to other apartments as the area grows.

@Cameron Oades Hi Cameron - there are a few markets in Quebec and Ontario (not the GTA) that I've been working in that still have great cash flow and moderate but steady increases in property value.I go for communities that show a 4-6% increase in value, a less than 10% overall vacancy rate (I aim for 5) and constant increases in population.I am currently working on 5 deals that are quite promising.

That said, I will seek higher margins for properties that are more expensive within that market, as risk increases as you move to properties fewer buyers in that market can afford.

Your dad's credit score will increase. 

The time may increase on Inspections but a Stop work order ,for not filing a building permit ,will be greater.

Can the rates increase at a dangerous rate since they aren't fixed?

I know this is a business to make money, but if they were to move out or you had to evict because they can't afford the increased electric bill and the rent, then you'd be out even more money with vacancy and turnover costs.

We've increased rents on 2 of the other 3 units and soon to be all 3 of the other units.