how much increase (by melinda [MD]) Jan 19, 2019 11:16 AM|
how much increase (by busy [WI]) Jan 19, 2019 11:25 AM
how much increase (by Moshe [CA]) Jan 19, 2019 11:25 AM
how much increase (by myob [GA]) Jan 19, 2019 11:28 AM
how much increase (by Richard [MI]) Jan 19, 2019 11:55 AM
how much increase (by NE [PA]) Jan 19, 2019 11:58 AM
how much increase (by Jim In O C [CA]) Jan 19, 2019 12:04 PM
how much increase (by plenty [MO]) Jan 19, 2019 1:06 PM
how much increase (by Hoosier [IN]) Jan 19, 2019 5:08 PM
how much increase (by fred [CA]) Jan 19, 2019 6:47 PM
how much increase (by BRAD 20,000 [IN]) Jan 19, 2019 8:01 PM
how much increase (by Busy [WI]) Jan 19, 2019 8:54 PM
how much increase (by Busy [WI]) Jan 19, 2019 9:14 PM
how much increase (by CGB [MI]) Jan 20, 2019 9:09 PM
how much increase (by BRAD 20,000 [IN]) Jan 20, 2019 11:55 PM
how much increase (by Ray-N-Pa [PA]) Jan 21, 2019 5:37 PM
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how much increase (by melinda [MD]) Posted on: Jan 19, 2019 11:16 AM
One year ago we rented a house to a family that agreed to clean up and fix up the house for a reduced rent. Normally (when in good shape) the house rents for $1600-1650. We agreed to rent to them for $1200 with them doing repairs and paying for everything needed (paint etc.). They have done as agreed. Good job!! Now I need advice as to how much I should realistically raise the rent. They have had a good deal for the last year as have I. I was thinking about raising the rent $100 as I do believe that to go much higher might be too much for them, but of course nobody there is saying, "Hey raise the rent $300 cause we can easily afford to pay more". I also do not want to be a chump and keep the rent ridiculously low when I could get more. Thoughts?? --24.233.xxx.xx
how much increase (by busy [WI]) Posted on: Jan 19, 2019 11:25 AM
I haven't used it, but, Jeffrey's method might be the perfect method for you. (Jeffrey is Mr. Landlord, creator of this site.)
Basically, you send a letter asking how much they can afford. There is much more too it than that, I'm thinking a search of Rent increase letter on this forum might give you results.
Sounds like you are off to a very good start with this tenant. --70.92.xxx.xxx
how much increase (by Moshe [CA]) Posted on: Jan 19, 2019 11:25 AM
I am not trying to be rude, but of course you should have thought about that when you first rented to them for $1200. The appropriate calculation would have been $1600-$1650 minus the value of the work that hey were to do. In that case, it would have been clear that the price would go back up to $1600-$1650 plus whatever increase would be appropriate for 2019.
how much increase (by myob [GA]) Posted on: Jan 19, 2019 11:28 AM
Don't be a chump--- Good job?
I would start by thanking them. As compensation we would like to offer you a month free rent. We are sending you a renewal for 12 months at (100 increase) month 12 will be waived as long as there are no problems the next 11 months.. --99.103.xxx.xxx
how much increase (by Richard [MI]) Posted on: Jan 19, 2019 11:55 AM
I've had numerous failures trying to do this. Everything from poor work to just not doing the work at all.
Since I usually buy class C places that need work, almost always the tenants want to trade work for rent.
My new way to try this is they pay full rent and I will refund the value of the work AFTER it is complete and checked. The quality required is agreed on in advance as well as a timetable for completion.
I'll see how this goes. --23.121.xx.xxx
how much increase (by NE [PA]) Posted on: Jan 19, 2019 11:58 AM
Precarious situation. Not typically a good way to start LL/T relationship. How much did they spend on average each month for the year they were there? Are they done working? If it was $200-$300 a month, you could approach that as an increase or half that or whatever. Now that they are done putting money into it.
I can almost guarantee now what will happen is they will fire back at the rent increase with something like "But we did all this work, why are you raising our rent?"
All in all, expect pushback. --50.107.xxx.xxx
how much increase (by Jim In O C [CA]) Posted on: Jan 19, 2019 12:04 PM
I would probably go $100 and maybe $100 each year but stop at $200 below market. Good tenants are hard to find. --174.212.xx.xxx
how much increase (by plenty [MO]) Posted on: Jan 19, 2019 1:06 PM
I would go market rent. The agreement has ended. Sign here or move. --99.203.xx.x
how much increase (by Hoosier [IN]) Posted on: Jan 19, 2019 5:08 PM
I'd start with $100 and maybe increase again in a year if you still think it's below market. --99.92.xxx.xxx
how much increase (by fred [CA]) Posted on: Jan 19, 2019 6:47 PM
Now you see the mistake you made that put you in this position, by agreeing to $1200.
They did some work, enjoyed reduced rent, and without any calculations whether the compensation was accurate or not, this deal is over.
Now you start a new chapter. Raise to rent to 90% of market rent, in your case here to around $1450, telling them that their discount is for them being 'good tenants'.
They will be fools to leave. --99.59.x.xxx
how much increase (by BRAD 20,000 [IN]) Posted on: Jan 19, 2019 8:01 PM
Count me in with fred and Moshe. You gave the discount for a property that needed work, you basically paid them $4800 (12 x $400 discount).
You don't owe them any more special favors. You did them a favor and now we're on to Part 2.
Now the house is MARKET READY and rent should be market rent, back up to your $1600.
They are expecting that. They knew the discount was for the work, the work is done.
If they move out what would the rent be? Same as is they stay.
Don't be shy. Gotta be strong ans stand up for your business.
Letter: 'Joe, now that the repairs are complete the rent will be $1600 starting Feb 1."
I have tried this Work for Rent method several times and only ONCE has it worked. I calculated the labor cost to hire it out, reduced the rent for 90 days to match the labor amount, the lease says the rent goes to the normal rent after the 90 day period.
A good freind just lost her rental doing this. The applicant talked her into reduced rent to replace the failing septic system "My Dad installed these". Well nobody fixed anything, the house was condemned due to failed septic, and she did not have the $10K for a new one, partly because she had given them reduced rent for a year.
In the future I suggest a lease for the full amount then a discount on the rent for work completed based on a written, agreed amount.
how much increase (by Busy [WI]) Posted on: Jan 19, 2019 8:54 PM
Well, I am very surprised that no one has chimed in about the Mr. landlord rent increase letter. I thought some of yíall used that.
It doesnít surprise me that this bunch seems to think you did a terrible thing letting someone fix up. The inter webs are full of stories where landlords, other business persons, extended a hand, and all they got for their troubles was rabies.
But, clearly, you DID get a good result. I offer congratulations on that.
Does anyone use Jeffrey Taylorís rent increase method? Or, am I mis-remembering? Is this someone elseís rent increase method ? --70.92.xxx.xxx
how much increase (by Busy [WI]) Posted on: Jan 19, 2019 9:14 PM
Melinda, I did some looking on the Mr. Landlord site, Jeffrey offers packages of forms, training, but, my old eyes were getting blurry. I dodnít Spot the rent increase letter, but, I am quite sure that itís Jeffrey Taylor that uses this.
You had good success with this tenant and the repairs, so, either: you were extremely lucky, or, more likely, you have some good management skills. You recognized that this tenant was likely to follow through, so you hired them. And, during the year, you coached/ supported them in whatever fashion, and the job got done. Good management.
The rent increase letter I am speaking about basically says, market rate is this, what can you pay? Or, something to that effect. Because you know how to manage, you have a tenant that deals fairly, this could be a very good win for you.
Please poke around on this website (MrLandlord.com), I bet youíll find it. With your management skill set, even if you have to pay for the letter, or whatever package it is in, it would be worth it. --70.92.xxx.xxx
how much increase (by CGB [MI]) Posted on: Jan 20, 2019 9:09 PM
This is a note to advise you your rent will increase by $200. We understand times are tough. If you can not afford the increase let us know what middle ground you believe is fair. Per Jeffrey, if the dont accept the increase in total, most come back with 50%. --67.149.xxx.xx
how much increase (by BRAD 20,000 [IN]) Posted on: Jan 20, 2019 11:55 PM
Is there a reason you are being shy about this? Didn't you expect the rent to go to normal once the repairs were complete?
how much increase (by Ray-N-Pa [PA]) Posted on: Jan 21, 2019 5:37 PM
Not that you can go back in time and correct it, but in the future - set year two rent when you are filling out year one lease.
Both side will be happier if they know what to expect.
I am interested in seeing what will happen after you let them know rent is going up. My guess is your normal wear and tear will get elevated. Perhaps you should ask them to leave and when they insist, then you bring up the increase. --72.23.xxx.xx
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