Rent Increase to Cover Taxes and Insurance
I purchased my first duplex and have kept the tenants on MTM to see how they do. I just received the appraisal for 2024 and the assessed value will increase $28K, increasing my taxes $600 if the tax rate doesn't increase. I will not know what the tax rate is until December. Would you recommend increasing the rent now knowing the taxes for this year will be approximately $600 ($50/month or $25 per tenant/month). My taxes are paid through escrow so I will need to make sure I am whole when taxes are due come December of this year. How do you all handle annual increases to adjust for taxes and potential insurance hikes and would you have them sign a new MTM agreement or add an addendum? The property is in Milwaukee, WI. Thanks!