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First: Research, try to research what similar places are going for. Make appointments to see similar apartments in your area, as if you were a potential tenant, and find out how much they cost, the shape they are in. You could even go as far as asking a local real estate agent or marketing firm what the going rates are. Also, be sure to research any potential tax increases, inflation, and the cost of owner provided utilities (water, etc.) Second: Judge what your apartment is worth in comparison to the market. If it is under market value, assess what the true value is (currently at $775, market is $850) use this knowledge to your advantage and make it seem like you are cutting the tenant a break. Be sure your research is well documented in case they decide to check up on your numbers. Tell them that market rates would be near a 10% increase, but you are only going to increase the rate 3%. If the property is worth less than what they are paying, I suggest using the tactic of increased property taxes, or inflation to at least get a 2-3% increase. That way if you find in the future, after renting to them for a few years, they won't be as hostile to a rent increase out of nowhere.
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