How to Increase Rent

by Remy Lacanaria


Posted on 2019-08-25 20:17:01


Raising Rents

 

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Many landlords are reluctant to raise the rent, and it's understandable. But raising rent is just part of any business. Before you start the rent, it would be better to do some market research first to see how is the rent going in the neighborhood.

Property owners make a profit each month from the rent they receive from tenants, but there will be times that you have to raise the rent to continue getting profits. But remember that landlord can't just increase rent at any time or whenever they want; landlords must wait until the new lease renewal before raising the rent.

In most states, landlords are legally required to give tenants advance notice of rent increase. On a month-to-month occupancy, you must provide a proper notice depending on what your state law requires before raising the rent, this is usually 30 days. 

Here are some tips on how you can raise your rents, without having to worry on losing your tenants;

  • Raising rent yearly, or raising the rent on every lease renewal. You can have an increase of 2-4% every single year on rental or every renewal. It is a reasonable increase, and it will keep the rent competitive to market levels.
  • Send a rent increase notice before the lease-end. Sending a Notice to Increase will let you determine if your tenants will still renew the lease or not, this will give you time to market and show your place to prospective tenants.
  • Know the Law in each and every state. Each and every state has a ruling law to be followed. You can't just raise the rent if your place is rent-controlled or if there's a statute that limits the increasing amount.
  • Do some market research. Before you start raising your rent, you may want to do market research first and find out the rental rate in your neighborhood. This will give you an idea on how much other landlords in the area charges their tenants before making a decision.
  • Know why you need to raise rents. In raising rents, you have to consider the expenses in the following like:
    • Property taxes
    • HOA dues
    • Property manager
    • Cost-of-living expenses
    • maintenance
  • Lastly having good relations with your tenants. Nothing beats having a good relationship with your tenant. If your landlord-tenant relation is a smooth one, you won't have a hard time telling them that you will have an increase in their rents. Your tenants won't think that you’re a typical landlord that is into business, but rather thought that you’re a nice person.
  • Lastly having good relations with your tenants. Nothing beats having a good relationship with your tenant. If your landlord-tenant relation is a smooth one, you won't have a hard time telling them that you will have an increase in their rents. Your tenants won't think that you’re a typical landlord that is into business, but rather thought that you’re a nice person.

 

 

 

 

 

 


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