Raise rent
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Raise rent (by Peggy [CA]) Apr 18, 2019 12:15 PM
       Raise rent (by Jim In O C [CA]) Apr 18, 2019 12:22 PM
       Raise rent (by Robert J [CA]) Apr 18, 2019 12:28 PM
       Raise rent (by Moshe [CA]) Apr 18, 2019 12:30 PM
       Raise rent (by JB [OR]) Apr 18, 2019 8:51 PM
       Raise rent (by S i d [MO]) Apr 19, 2019 6:31 AM
       Raise rent (by Jose [CA]) Apr 19, 2019 7:48 AM
       Raise rent (by myob [GA]) Apr 19, 2019 8:18 AM
       Raise rent (by Peggy [CA]) Apr 19, 2019 8:46 AM
       Raise rent (by Busy [WI]) Apr 19, 2019 9:44 AM
       Raise rent (by Still Learning [NH]) Apr 19, 2019 6:35 PM
       Raise rent (by Salernitana [CA]) Apr 20, 2019 9:38 AM
       Raise rent (by JKJ [MA]) Apr 20, 2019 2:34 PM
       Raise rent (by WL [CA]) May 3, 2019 5:00 PM
       Raise rent (by Libi [NY]) May 3, 2019 9:41 PM
       Raise rent (by Brian [CA]) May 4, 2019 1:56 AM
       Raise rent (by Brian [CA]) May 4, 2019 1:57 AM

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Raise rent (by Peggy [CA]) Posted on: Apr 18, 2019 12:15 PM
Message:

My husband died 5 months ago. His system for the last 20 yrs. was to keep the rental income on our 3 small units low to avoid turnover and just sell the triplex at retirement. I need now to either sell the place or raise the rent. Normally I raise it very little (2%) at the start of each year but it is quite under market and 1 bdrm apartments don't exist here. If I raise it by $100 per unit it will still be under market but closer to correct. Now that the dust has settled somewhat for me I was going to compose a letter and raise the rent 12% ($100) to start June 1st. Can I do that? In January I raised it the usual 2% as I had not figured things out yet.

--50.120.xx.xx




Raise rent (by Jim In O C [CA]) Posted on: Apr 18, 2019 12:22 PM
Message:

If the increase in one calendar year is over 10% then you must give 60 days notice on the last increase.

You shouldíve got a stepped up basis for capital gains. Now might be the time to sell even if your rents are low because a new owner would be able to increase the rents. I would not reduce the property price but use the low rents as a selling feature. --99.23.xxx.x




Raise rent (by Robert J [CA]) Posted on: Apr 18, 2019 12:28 PM
Message:

If you and your husband had a family trust and the apartment building was in that trust, you have several advantages to consider.

1) You now have a stepped up basis and can start to re-depreciate the building at today's value. His 50% share. This means you will save on your income tax.

2) If you were to sell, 1/2 of the property would have no Long Term Capital Gains Tax.

a) The Federal rate is 20%

b) California has a 13.3% rate

c) If your income is over $200,000, then you will pay a 3.8% affordable care tax.

Add your sales commission 6%, closing costs 2% -- and you'll see if you sell, the net cash in your pocket isn't so much.

If you have some savings, then don't be too afraid to raise rent. If your tenants moves, you can fix the place up and get more income.

Good luck. --47.156.xx.xx




Raise rent (by Moshe [CA]) Posted on: Apr 18, 2019 12:30 PM
Message:

Is the property under rent control? If yes, then you may need to sell rather than raise rent, because you missed your opportunity to raise rent yearly.

If you are not under rent control, then you have only the notice requirement to comply with.

--47.139.xx.xxx




Raise rent (by JB [OR]) Posted on: Apr 18, 2019 8:51 PM
Message:

Peggy, I'm sorry for the loss of your husband.

I would have preferred you hadn't so recently raised the rates on the tenants. Tenants don't really expect more than one increase each year.

But since you are so far under common rents in your area then you should probably provide at least a 60 to 90 day notice to increase again. In your rent raise letter maybe provide a short explanation that the rates are still below market and you hope that they choose to stay (if you want them to). And that you understand if they must provide notice of their intent to move if they cannot afford it. --24.20.xxx.xxx




Raise rent (by S i d [MO]) Posted on: Apr 19, 2019 6:31 AM
Message:

My regrets for your loss, and I'll try to be helpful.

Without knowing California law, I don't think stepped up basis applies here, unless the rental was in your husband's name only and it passed to your name at his death.

60 days notice for large increases in CA, from what others say.

Most importantly: do you want to be a land lady? How involved were you with the rentals over the years? It takes a special kind of person to deal with tenants. If you are not familiar with the laws--and my guess is you aren't since you were not familiar with a basic topic like rent raises--then it may be best to turn this over to a professional management company or sell according to your original plan. Talk to a CPA and ask about your tax liability if you sold. If you do not receive a stepped up basis, 20 years of depreciation recapture will be taxed at 25%. Fortunately, any capital gains will only be taxed at long-term rates of 15 or 20%, depending on your income.

Best wishes. --173.20.xxx.xxx




Raise rent (by Jose [CA]) Posted on: Apr 19, 2019 7:48 AM
Message:

Hi Peggy. My sugestion is raise 50 dollars a year untill you get close to market if you are happy with the tenants. In my experience they dont move for 50 but they may move for 100. Sorry for your loss. I lost my wife a few years ago. --172.58.xx.xx




Raise rent (by myob [GA]) Posted on: Apr 19, 2019 8:18 AM
Message:

Found it heart warming that most said sorry for your loss first. Please include me in that condolence to you.

Looks like you got a CA answer.

Another reason to keep your rents up-- so you don't have this awkward problem. --99.103.xxx.xxx




Raise rent (by Peggy [CA]) Posted on: Apr 19, 2019 8:46 AM
Message:

I really appreciate that you all took the time to respond to me and give your condolences. If I could say how helpful you've all been. It's only been 5 months since his death after 44 years together so I am unsure that all my brain cells have returned. What I think I'll do is keep the place for awhile and not raise the rent until next year and then do the $50 amount each year. These tenants are long term, one for 5 years, and good tenants. It will also give me time to make the right decision with the place. Thank you all. --50.120.xx.xx




Raise rent (by Busy [WI]) Posted on: Apr 19, 2019 9:44 AM
Message:

Peggy, you are wise to avoid making major life changes after such a loss. Sounds like you have a good plan. I am so sorry for your loss. 44 years, wonderful! Weíre at 36 years this year. My heart breaks for you. --172.58.xxx.xxx




Raise rent (by Still Learning [NH]) Posted on: Apr 19, 2019 6:35 PM
Message:

Again, sorry for your loss. Do all the rents renew at the same time and are all leases year leases? If yes to both then as long as you are not under rent control, I might be more conservative with $50 each only to try to avoid all of them moving at the same time. If they renew at different times, then you could try raising $100 with the first renewal. If they move you could then decide to do the same for the next renewal for raise it less hoping they stay. Also I think Jeffrey and several landlords on this board use a letter asking the tenants to set their own rent increase and many raise it more than the landlord would. You can search old Q&Aís for specific info. --24.61.xxx.xx




Raise rent (by Salernitana [CA]) Posted on: Apr 20, 2019 9:38 AM
Message:

My condolences to you, your family, and all of your loved ones who knew your husband.

I am really thankful that you followed this thread to help advise you what to do. Depending on where your property is located, it can be rather difficult to find good tenants.

Best of luck, and I am sorry for your loss. --73.93.xx.xx




Raise rent (by JKJ [MA]) Posted on: Apr 20, 2019 2:34 PM
Message:

Peggy, Iím sorry for your loss, you have received good advice from others far more knowledgeable than me, so I donít have any advice regarding this question, however I will add that since you are not familiar with being a landlady you should utilize this forum for any questions you have going forward. You will get excellent advice from some people that have been doing this for a long time and are willing to share their knowledge and experiences. I stumbled on this site about a month ago and have learned so much. With every question I have posted I received an answer, advice how to prevent the problem I was having, and a laugh from all the replies. Again Iím sorry for your loss, and wish you the best with your rentals. --174.192.xx.xxx




Raise rent (by WL [CA]) Posted on: May 3, 2019 5:00 PM
Message:

Hint: do not raise the rent on all the tenants at the same time. This is how tenant unions and rent strikes start. $50 spaced out over 90 days per tenant may save you headaches. --174.65.xx.xxx




Raise rent (by Libi [NY]) Posted on: May 3, 2019 9:41 PM
Message:

We did raise the rent for everyone at the same time.

Was telling that everyone is equal and we are not picking on you. Every one stayed.

The other idea: blame someone else.

Raise the rent because taxes are higher now.

You was trying to absorb it for a long time, but canít do any longer.

If they are not happy - they can call the local government. My argument was even parking ticket is higher every year.

Do not raise to the round number.

Something like $42.74 look more legitimate and in the mind closer to $40. $51 is better looking than $48. --174.203.xx.xxx




Raise rent (by Brian [CA]) Posted on: May 4, 2019 1:56 AM
Message:

Iím sorry for your loss, Iím sure having to make these decisions now is much harder than it otherwise would be.

It think itís important that you look at what other units are renting for and realise just how much your units are below the current market. California is is near the point of enacting some form of statewide rent control and I believe the idea that you will be able to raise the rent $50 every year just wont be possible.

Did you know that last year the governor declared an emergency for most of the state and said that price gouging laws applied to rental housing (no increase over 10% even if the tenant moved out). This emergency was extended for over 6 months.

I predict that the new governor (even more liberal than Moonbeam) will declare a ďhousing emergencyĒ to start the anti price gouging law again to keep rents down while a statewide rent control bill is being written and passed.

I understand how difficult it is to raise someoneís rent several hundred dollars at once. Perhaps now is the best time for you to sell the property. --174.213.x.xxx




Raise rent (by Brian [CA]) Posted on: May 4, 2019 1:57 AM
Message:

Iím sorry for your loss, Iím sure having to make these decisions now is much harder than it otherwise would be.

It think itís important that you look at what other units are renting for and realise just how much your units are below the current market. California is is near the point of enacting some form of statewide rent control and I believe the idea that you will be able to raise the rent $50 every year just wont be possible.

Did you know that last year the governor declared an emergency for most of the state and said that price gouging laws applied to rental housing (no increase over 10% even if the tenant moved out). This emergency was extended for over 6 months.

I predict that the new governor (even more liberal than Moonbeam) will declare a ďhousing emergencyĒ to start the anti price gouging law again to keep rents down while a statewide rent control bill is being written and passed.

I understand how difficult it is to raise someoneís rent several hundred dollars at once. Perhaps now is the best time for you to sell the property. --174.213.x.xxx



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