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:
How soon after purchase would you recommend the rate increase?
How much notice would be sufficient before increase goes into effect?
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?