Dear Monty: I bought a six-unit apartment building recently. How can I soften the blow to the tenants when I raise their rent?
Monty’s Answer: The nature of your question suggests this is your first rental property. You gave little information about the property, such as location, age, condition, staggered lease terms, etc. It is unclear why you want to raise the rent. Is the property currently cash-flowing? As a new owner, consider going slowly unless your due diligence included detailed research of the rental market in your area. What are the rents for similar apartment units? Are all the apartment projects fully occupied? How long does it take to secure a tenant? Assuming you determine it is a landlord’s market, what is the most you can raise rents without emptying the building?…