You have not indcated a valid reason for raising the rent.
Of courrse your costs may have increased and profit has fallen below acceptable levels, but you do not mentions that.
Of course your profit model may be based on churing tenants allowing you to adapt to market changes more rapidly. But you do not mention that.
Of course you may have a profit mechanism built into the transitioning tenant model, but you do not mention that.
It appears the ONLY reason is greed.
When a good tenant is replaced by a bad tenant, greed exacts a high price.
Here in the Tampa area the annual increase is 3% regardless of economic factors. A free month of rent will be offered before the rate will be decreased to match market.
3% is less than the cost of moving, but enough to get attention. Then the property management company keeps sending the 'Cheaper to buy than rent' mail. There appears to be an end game.
Although rental prices do rise every year, your question may be more difficult to answer than just finding a percentage. Some landlords raise by a fixed price yearly, some by a percentage, others, as long as the tenant is respectful to the property and pay on time, end up in the same situation as you. A couple factors to keep in mind while you are making your decision is average rental rates for the area and increase in cost of living expenses in Philadelphia.
If you need further assistance with pricing, I would be happy to help. Please feel free to reach out to me, and I can send you additional information about pricing.
Hilary Lefkowitz Karaman
Find out more about me!
93 Old York Road, Ste 6
Jenkintown, Pa 19046
RE License: RS318196