Good Tenants, Raise Rent?

My three current rentals are up for renewal in the coming months (I utilize 12 month leases for these ones, as they are higher end). I really want two of the three to stay, and the other I'd be fine either way. I'm curious how many of you keep rent stable for tenants you would like to stay. --68.249.0.102

RE: Good Tenants, Raise Rent? (by Kevin[OH])
Posted on: Mar 31, 2004 12:21 PM
Message:

I have very seldom (in my 5 years) raised rent during a tenancy... but, I think I should, if that matters... --68.252.5.168

RE: Good Tenants, Raise Rent? (by James[MA])
Posted on: Mar 31, 2004 12:26 PM
Message:

I raise rent a token 10 - $20 for good tenants each year and throw in a free upgrade. Bad tenants get a bigger increase with no upgrade.

The only situation where I don't raise rents is when current rents are over market, which has been the case for the last 2 years. --192.223.226.6

RE: Good Tenants, Raise Rent? (by GUS[wi])
Posted on: Mar 31, 2004 12:28 PM
Message:

James, what kind of upgrade? --68.249.0.102

RE: Good Tenants, Raise Rent? (by James[MA])
Posted on: Mar 31, 2004 12:32 PM
Message:

Gus,

I offer a ceiling fan, microwave oven, or something that doesn't cost more than $50. --192.223.226.6

RE: Good Tenants, Raise Rent? (by deb[or])
Posted on: Mar 31, 2004 12:40 PM
Message:

I got a little perspective recently when a long term tenant of 11 years moved out. I'd raised the rent only twice--she was in her 60's and when she moved out she was 71. Even though she was only paying $450 for a 2 bdrm place (local market is $600) I did the math. Over 11 years she paid me $55,000!

When I bought my duplex it was only $65K.

So she just about paid for my place. In the meantime, she called rarely for maintenance and paid the rent on time. I say I was the winner and it was well worth the $150 a month. --208.248.162.196

RE: Good Tenants, Raise Rent? (by Dave[OH])
Posted on: Mar 31, 2004 2:02 PM
Message:

I raise rents about every other year, usually just about $20 - $30, if the market permits.

Did you do the math on what you would have made if you had charged her that extra $150 a month? $150 x 12 months x 11 years = $19800.

It pays to raise rents a little every once in a while. If you are a good LL, the tenant will not leave because the rent increased 3% - 5%. --63.162.24.193

RE: Good Tenants, Raise Rent? (by terri[oh])
Posted on: Mar 31, 2004 2:31 PM
Message:

The only time we raise rents on our good tenants is if there's a large increase in our expenses due to things such as prop taxes or insurance. We've had one tenant for eight years and have only raised her rent twice. She always pays on the first and never bothers us. I'd keep her for the next 20 if I could. As long as we have good cash flow on the property we don't raise rents on good tenants. --24.164.84.223

RE: Good Tenants, Raise Rent? (by Ben[Ga])
Posted on: Mar 31, 2004 2:39 PM
Message:

I have one tenant who I will not raise the rent on b/c he is basically my maintenance man. I raise the rents on the rest. If they are good, I try to keep their rent just far enough below market rent so that they won't move. If I don't care if they stay or go, I keep rent close to market. If they are terrible, I give them a 60 day notice to move. --207.69.137.9

RE: Good Tenants, Raise Rent? (by Kevin[OH])
Posted on: Mar 31, 2004 3:03 PM
Message:

Personal philosophies are yours to keep, however, let's look at why I don't or really at those who do... most of you say you raise it $10-$30 per month so let's use $20 as an average... that gains you $240 in the first year, and with $20 raise the next you get $480 that year...so you get $720 over two years... I think it is fair to consider 3 years a good term for a tenant... what is the average rent? say $600... I had no vacany, no work to clean, prep and show and a happier tenant... you can have the extra $120, I prefer to have the same tenant and not deal with the potential vacancy and risk of the next tenant not being as good and costing me more than the extra $20 a month... just my thoughts... --68.252.5.168

RE: Good Tenants, Raise Rent? (by Kerry[co])
Posted on: Mar 31, 2004 3:24 PM
Message:

Here's a second to Kevin's rationale. I have a tenant who was in the building when I bought it ten years ago. I have only raised rent once ($25). He's below market but I wouldn't trade him for a higher payer. Never complains, does most of his own repairs. Works on the yard. And he even brews his own beer which he offers me when I'm over there.

He'll always look after the places when I'm on vacation.

That kind of tenant is worth a lot of money. --67.31.146.213

RE: Good Tenants, Raise Rent? (by Dave[IL])
Posted on: Mar 31, 2004 3:42 PM
Message:

I have raised my rents every year for all tenants and expect to continue doing so as long as the market rate continues upward. I don't feel any obligation to reward any tenant for being good. I expect them to be good and if they are not they can seek other, more suitable, housing. In return, I provide a clean and safe living environment and make repairs as quickly as possible. I also make annual upgrades to individual units and the common areas as the budget allows.

Wal-Mart doesn't hold their prices down for me, even though I spend alot of money there every year and would certainly be considered a "good customer". Neither does the gas station or the phone co. All of my expenses rise each year, particularily insurance and taxes. The tenants must absorb those costs.

. --12.66.64.83

RE: Good Tenants, Raise Rent? (by Sean[CA])
Posted on: Mar 31, 2004 9:32 PM
Message:

Re-read Dave's post. --63.198.19.49

RE: Good Tenants, Raise Rent? (by Teresa[WA])
Posted on: Mar 31, 2004 11:19 PM
Message:

You shouldn't shop WAlmart... --63.224.223.218

RE: Good Tenants, Raise Rent? (by Dan[MA])
Posted on: Apr 1, 2004 5:15 AM
Message:

It's a falacy to think not raising the rent keeps tenants in place. Good service keeps tenants in place. Your lack of turnover can easily be outweighed by lost revenue opportunity. Show me a landlord with a 0% vacancy rate and I'll show you a landlord who's rents are too low. I raise rents each and every year and when people move I have a detailed exchange with them over why they are moving. I have yet to have somebody move over a rent increase. --24.128.227.165

RE: Good Tenants, Raise Rent? (by gevans[SC])
Posted on: Apr 1, 2004 5:16 AM
Message:

I have never yet raised the rent for a good tenant. I have considered it, but decided not to. So far, all my tenants are desirable and I want to keep them. I make sure they know that I am not raising their rents because they take care of the place and pay early. --141.129.1.98

RE: Good Tenants, Raise Rent? (by Rob[WV])
Posted on: Apr 1, 2004 3:48 PM
Message:

I raise the rents at every lease renual and also if I have a new tenant coming in. --65.78.216.181

RE: Good Tenants, Raise Rent? (by Martin[MO])
Posted on: Apr 1, 2004 4:00 PM
Message:

I raise the rent every year for almost everyone. For many it is only $10/month because my rents are near market. I have never had anyone tell me the rent raise was the reason they moved. I don't expect them to move for $10/month any more than I stop driving because the price of gas went up 10c. --192.115.251.4