Should i increase rent

Reach out to your tenant 90 days before the lease is up to let them know there will be a rent increase if the lease is renewed. This gives your tenant the opportunity to adjust their budget and prepare for any increase.

Sending the letter 90 days in advance also gets tenants thinking about their plans early. You can also use this opportunity to give them an incentive to renew their lease early. Clear, professional communication will go a long way towards reducing conflict with a tenant over rent increase. Written notification is the best way to inform your tenant of a rent increase, and may be required by local law or your lease agreement. When you provide written communication, you can:.

You may also want to use this rent increase notice for reminders of your payment policies and late fees, even if they are already clear in the written lease. Be sure to check your lease and local law to make sure your written communication complies with any relevant requirements. The more satisfied a tenant is in general with living on your property, the less likely they are to complain about a small rent increase. If not, and they do express concerns, here are some ideas for specifically addressing tenant complains.

Explain that your own expenses are going up, and cite specific examples such as maintenance costs, utilities, property taxes, insurance premiums, or other aspects of your rental business. This will remind them that a small increase in rent will enable you to keep the property maintained and will actually benefit them in the long run. Even then landlords are required to give 60 days written notice of rent increase. If they have no plans to leave, it may be more beneficial for your long-term to hold off on increasing the rent too much.

Alternatively, you could look at small incremental increases every months to avoid scaring your tenants off with a large rise in rent. At the end of the day, your rental property is an investment. Whether it be a question about buying, selling, or renting; we want to hear about it.

Oh and we love writing helpful articles about the wonderful communities we serve. Whether to raise rent on a tenant is a question landlords struggle with all the time. If you have a good tenant, you might be tempted to keep them happy by not raising rent.

But if your insurance premiums, taxes and utilities increase, the higher costs could eat into your profits. And if your rental market is heating up, you might not be getting what you could for your property. Download our free landlord notice templates , including a rent increase letter, late rent notice and lease renewal letter.

As the landlord, you may decide to increase rent if:. Depending on local laws, a landlord may be able to raise rent before renewing the lease.

A lease agreement sets a fixed rent price for a given period of time i. For tenants who are part of the Housing Choice Voucher Program, or Section 8 , a rent increase is usually only possible once a year, depending on state and local laws. Each year, the HUD sets new Fair Market Rent standards, which can be used to help determine if a rent increase is appropriate.

More often than not, if the property manager is doing their job and the landlord is providing the required upkeep to the property, it will turn out to be other reasons that the tenant is vacating the premises, such as up-sizing, they have bought their own home or completely changing areas or other non-related reasons.

Think about the maths — if a tenant is planning to stay in the same area or in the same type of property, any other property they move into will more than likely be at or close to the rent they are paying now. It does not make sense for a tenant to more than likely spend more than this amount in moving costs, just to live in the same or similar property to the one they are moving out of, only to pay the same rent that they apparently moved out to avoid.

However, if you maintain good customer service and a well maintained dwelling for them to reside in, small rent increases will not affect tenant sentiment and will actually ensure you give yourself the best possible chance that they remain a long term trouble free tenant.

If you would like to know whether it's time to increase your tenant's rent, feel free to contact John Gilmovich on or [email protected]. At Real Property Manager we only manage properties. Which means our focus is on you and your investment. Your Name required.