I was a few hundred below market on two SFHs last year.
Tenants had been there 3 years and decided to buy.
Was able to go up about $350 on average on each.
Needed to spend $3000 on one and about $6000 on other to get everything perfect. But expect tenants to stay longer.
Long story short, if you’re undercharging rent, you’re probably also deferring maintenance and other normal upgrades. It’s best to get closer to the market and also do what is necessary to keep the property in top shape. San Diego is more and more a premium market (even at the low end).
With new tenants paying more, more demands were made but overall the situation is much better.
Keep in mind, rents could go down in a few years if many go away for reasons yet to be seen. Not likely but possible.
