Purchasing a park where lot rents are far below surrounding comps by as much as 60% to 100% below. The tenants have not had a rate increase in many years. I plan to raise rents once I purchase the park. This is an all age park and all homes are owned by the tenants. There are no rent controls in this state/city and state has very good landlord laws. My questions are:
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How soon after purchase would you recommend the rate increase?
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How much notice would be sufficient before increase goes into effect?
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Would you increase rate to lowest nearby comp all at once which is about a 60% increase (about $50 more per month), or some smaller % and keep increasing in increments until the lot rents reach market value?