I have decided all my future leases will include a clause indicating the annual rate increase. I have had 2 contentious 'rent increase' notifications this round. No more, next time I will just point to the lease clause. Thoughts?

I have a line in my lease that says it but I have never filled it in. Sorry to not address you question. I am on the fence about it. It seems like a good idea but it also takes the decision making out of your hands. Here's my language.

I used to live at a really expensive complex and most of my money went to pay for that. They raised the rent every year to about the level of my raise. It was pathetic. Then my salary grade got raised for my job and it got better.

If I were going to do that and I did do it once for some very under paid rents, I would do just 1% per year. That doesn't hurt much and will not cause anyone to move.

Others may handle it differently, but for me if rental rates go up 10% I just stick with the 2.9%. I don't mind having a good tenant below market as long as I'm getting the annual increase. It will catch up eventually. If the rental market stays flat, I won't raise them above the market, but if they are below market I will still raise them. So if the first year market increases 10% and rent increases 2.9% and second year market stays flat, rent still increases 2.9% because the raise will not take them above market. Hope that makes sense.

I've included an auto-renewal with a rent increase in my lease as a clause for quite a few years. I then CHOOSE if I want to increase or not.

Also, I have it as a flat amount (like $25) regardless of what the rent amount is. This way, when I do raise the rent I typically will make the offer at 2% (or a little less) of the rent amount (I look like a "hero" to them and offer them to stay for another year). If we've had problems or issues (like a "slow pay" or a bit of a complainer or something) BUT not enough to make us say "ok get out" then I may just keep the $25 - just to see if they'll pay it. Only had one person that we did that to. Eventually, we just told him to get out. HAHA

Laura,

Been doing and been posting about this for years.

It’s soooo simple I don’t understand why LLs continue to stress and try to chase down residents to re-sign, and HOPE they agree. I prefer to stay in control of my empire not rely on hope.

My lease is clear: ‘This lease automatically renews on the anniversary date each year with a 2.9% Cost of Living increase.’

And ‘increases in property taxes, levys, fees, fines,, ins etc which are not controlled by Management will be added to the tent. ‘

At signing folks are relieved they won’t be hit big in year 2.

We simply send a text reminding them their next draft on Aug 1 will be for the new amount $xxxx.

Make it easy for the res.

Same here. No fuss. No muss. About 6 weeks before the current lease or renewal expires, I just remind them that the rent increases by 2.9% bumped to the next highest 5 dollars. The lease is automatically renewed for 1 year at that new rate (I specify the amount), unless either of us notifies the other in writing that we do not wish to renew the lease.