State Specific Question About: OKLAHOMA (OK)

Yes. I use anywhere from 1 % to 3% annually. I could go much higher but I try to keep great tenants who take wonderful care of my properties for a long time. PITA's get 5% to 10% or more.

In general, yes. As costs increase, it's better to increase rents a little at a time each year vs. waiting 5 years then hitting a tenant with a large increase. Ease it into their budget slowly over time.

That said, you must know your market. If rents are dropping in your area, you may have to drop too, even if costs like taxes and insurance continue to rise. Some costs are determined outside your area and may rise or fall independent of what local incomes do. If rents are skyrocketing...then you too should bump up as quickly as possible.

100% yes even if by a marginal amount (typically $10 - 15 added to the monthly rent per year). Costs go up and tenants should understand this. Tenants certainly expect a pay raise each year from their employer so why should a landlord be any different. In 20 years with 15 units, no one that comes to mind has moved out because of my rent increases. I keep rent increases a bit below the inflation rate and adjust to current market rents when I have an apartment turnover.

The only time I have had complaints is when a long term tenant sends in a note with the annual lease renewal that states that the rent has increased by $100 - 200 a month since they have been a resident. I remind them that the increase over the 10 years (or whatever the # is) is less than the rate of inflation and she is the lowest rental amount in the entire building (I have multiunit buildings). This definitely diffuses the argument / discussion as they realize that they are receiving a relative bargain compared to others.

Since I do fall behind market rents over time and I do like to constantly update and improve my units, I really do not prefer tenants to stay in my units longer than 5 years or so.

Even these small rent increases make a huge difference to my bottom line. With 15 units, a $15 / mo increase adds up to $2700 / yr, compounded every year.

I send out a 1-page addendum to each tenant every March for a May 1 lease renewal. I give them 2 or 3 weeks to consider the renewal, require them to sign and return. Printing up the letter, distributing and tracking down (texting) those that are non-responsive usually takes about four hours of my time.

with the economy the way it is and shortage of homes we are doing 100 to 150.00 on renewals. I'm doing what I can to get people out earlier on the lower rental $. Just had a call from one tenant who said he's not leaving early as he thought. Hated to hear that. We think he may have checked and seen what the rates have gone up to.

When we get the calls (irate) we remind the tenants-- with the economy picking up & property values increasing we all know what's next- Property taxes going through the roof and insurance premiums also. Sorry it can't be avoided.