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I think the answer depends on what the general state of the economy is in. If we are running on all cylinders then a 5 % increase should be very acceptable. However, if there is much un-employment specially in the geographical area that your trying to rent then I would not recommend raising the rent and I am even consider lowering it 5 % to off set all the other increases that your tennant is surly facing. Of course I would not recommend losing money but sometimes people remember thsee small things you do and it can go a long way....
Rents can increase or decrease depending on the situation and at the end of a lease term. However, I seem to recall a 10% rule. If you increase the rent by less than 10% then you only have to give a 30-day notice to increase but if you are increasing it by more than 10% then you have to give a 60-day notice.
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