Raising Rents

[tinae01]

As you can probably tell if you've read any of my earlier posts....I need to raise my rents due to taxes and insurance increases. But when I look in the paper or call number posted outside of other's rentals....the rents don't seem to have gone up anywhere! What is the deal here?

Do people use the lower rents to get tenants in and then start raising them later? I can't figure this out! I know I am not the only landlord whose expenses are rising.

[Debbie]

Generally, you do need to try to meet with the rental market in your immediate area.

However.......

Against my hubby's wishes, he agreed to my raising the rent that is slightly higher than other rentals in the immediate areas (which are few).

Why?

I knew we, as landlords, provide better service compared to other landlords.
Plus, our rentals are a bit nicer and a bit updated compared to other few rentals.

Plus, we have bigger garages and fenced yards.

Plus, we only offer month to month rental agreement---tenants tend to stay longer compared to leases.

Plus, we allow non-aggressive and adult pet that is required to be "interviewed" by us.

Thus, I was pretty darn confident that we'd still get good quality tenants.

If I had been wrong, all we had to do was to reduce the rent.

Debbie

P.S. - to those who are concern about allowing pets, let me say that only two rentals have pets and rest doesn't. Go figure....

[Aldo]

Raising current rents is a no-brainer. Just do it!!! Tenants generally expect and accept an increase in the 3-5% range. They may whine and cry, but they accept it. A higher percentage increase adds to the risk of their moving, but that's not likely to happen unless your increase is moe than 20%.

Rents are below value due to the poor rental market over the past three years. That's changing because of the current changing market. Interest rates have increased and fewer people can afford a home. The rental market is often slow in following the larger RE market. Locally I see rents increasing a bit, but not a lot......yet. I'd suggest pricing your units $10-15 above market and raising the rent another $10-15 in early spring when the market wakes up from winter.