raisin' the rent

[kimesha]

i have my eye on a duplex where the rents are way under market value. particularly 475 in a 700- 750 neighborhood. the tenent are on a month to month lease. if i were to go after this how could i go about raising the rent without too many problems. a friend of mine recomend to tell the tenent that they have 3 more months with the month 2 month lease and then the rent will be going up. this way they know way in advance and they have time to find a new place if they don't want the rent increase. your comments please

[Dan Auito]

Kimesha, feel free to download this and read up on the Land lording section. It tells how to do this! http://www.prweb.com/releases/2005/3/prweb223901.htm (http://www.prweb.com/releases/2005/3/prweb223901.htm) It's the first attachment in the top right hand corner!:SM029:

[Aldo]

Here's how rent increases affect tenancies, assuming one increase per year:

3-5% - Standard and readily accepted by most tenants.
5-10% - Most will begrudingly accept. Others may move. Offering an upgrade is adviseable.
10-20% - Most will move. Some will remain with: A) a substantial upgrade, B) a reasonable explanation
of the need for the huge increase, and C) inability to find similar housing for less money.
20-30% - They're history even if they have to pay more elsewhere.

If the market is truly at that higher level, do the full increase all at once rather than defer to later in the year when demand decreases. Multiple lesser increases in one year will probably give the same result as a 10-20% one-time increase. I'd add that offering a longer notice period will only defer the inevitable.