another landlord question

[LoveTrains]

I could also use some landlord advice. I typed out a HUGE long post and then fvcking proboards ate it so now I am cranky!

In any case, many of you know that I have a condo in Salem, MA. We had to move out of it and rent it in a hurry when we moved to Providence about 3.5 years ago. The condo is downtown, about a 3-4 minute walk to the MBTA commuter rail station, 1 br/1 ba, and comes with a parking space (which is pretty clutch in that neighborhood).

The condo is rented out for $1100/month. The tenant is great - always pays on time in that he mails me a check that I have in my hands on the 30, 31st or 1st - and never complains about anything. I rented it in 2009 for $1050/month, raised the rent to $1100 two years ago, and then there was no increase last year. I rented it originally for cheap because I just wanted to get a tenant in there ASAP and I sort of knew the tenant (friend of a friend). 

In any case, it was originally rented to a couple (I knew the woman) that broke up. Now dude lives there with his new gf, even though she isn't on the lease (according to the neighbors). It has also come to my attention thta rents are up significantly in the neighborhood. Another unit in our building is rented for $1350 or $1400 but it has an extra little "office" that was originally going to be the elevator shaft for the building (no elevator). That unit is on the third floor and mine is on the second, stairs only.

I also just found out that 1 br/1 ba apartments in the building across the street, without parking or a deck, are being rented for $1300. And those units are a little smaller than mine.

So I think I should raise the rent this year, but this guy is a decent tenant. his lease is up 8/31 so I want to communicate to him in June and let him know that he needs to decide by July 1 if he wants to stay or move.

What is a reasonable rental increase? You guys also probably have a better sense of the rental market than I do. I will also add that my mortgage on the place is $1500 so I would like to get some more $$$. 

[LoveTrains]

[LoveTrains]

May 30, 2013 10:11:58 GMT -5 RockNVoll said:

I don't feel qualified to vote since I've never rented in the Boston area but I think some kind of raise in the rent is totally reasonable, especially as you've only raised it $50 in four years. I understand the value of a good tenant but I'd be surprised if he walked over a small raise. Do you know what he does for a living?

He is a student and on the GI bill. He was previously in the military and in Iraq. He is in his 20s. My understanding is that his girlfriend also lives there (according to the neighbors) and she isn't on the lease. 

[LoveTrains]

I think I would like her on the lease - one more person to pay, right?

[preppy]

I think $100 is more than a fair increase. If we don't sell we will be increasing the rent on our property in CT by about that much as well.

Considering that my rent was just hiked $500/month I think anything is reasonable at this point, lol.

[LoveTrains]

May 30, 2013 11:03:54 GMT -5 preppy said:

I think $100 is more than a fair increase. If we don't sell we will be increasing the rent on our property in CT by about that much as well.

Considering that my rent was just hiked $500/month I think anything is reasonable at this point, lol.

$500/month? You don't even live in the city, right?!

[pinkroses]

Totally reasonable.  I voted raise to $1200.  If he walks then I would advertise it for $1300 for a new tenant.

[donthasslethehoff]

I think $100 is reasonable, especially given the fact that you know rents in the area are above what you are charging. I would also casually mention to him that you know his gf is living there, and if/when he lease is renewed you'd like them to both be on it.

[vtdiamond]

$100 sounds reasonable to me. We live in the northern burbs as well and our rent was increased by about $75/year the last 2 years.

[preppy]

May 30, 2013 11:29:15 GMT -5 LoveTrains said:

May 30, 2013 11:03:54 GMT -5 preppy said:

I think $100 is more than a fair increase. If we don't sell we will be increasing the rent on our property in CT by about that much as well.

Considering that my rent was just hiked $500/month I think anything is reasonable at this point, lol.

$500/month? You don't even live in the city, right?!

Nope! I live out in the burbs. It's completely insane. As annoying as it is to move, we are moving. It's actually going to work out though since we are going to move closer to my work so I can reduce my 1 hour commute. Saving money on gas and rent!