Rent Increases
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Rent Increases (by Roy [AL]) Apr 23, 2019 4:49 AM
       Rent Increases (by NE [PA]) Apr 23, 2019 4:54 AM
       Rent Increases (by myob [GA]) Apr 23, 2019 4:57 AM
       Rent Increases (by Roy [AL]) Apr 23, 2019 5:01 AM
       Rent Increases (by NE [PA]) Apr 23, 2019 5:04 AM
       Rent Increases (by NE [PA]) Apr 23, 2019 5:07 AM
       Rent Increases (by Roy [AL]) Apr 23, 2019 5:14 AM
       Rent Increases (by gevans [SC]) Apr 23, 2019 5:17 AM
       Rent Increases (by S i d [MO]) Apr 23, 2019 5:19 AM
       Rent Increases (by David [MI]) Apr 23, 2019 5:20 AM
       Rent Increases (by Roy [AL]) Apr 23, 2019 5:32 AM
       Rent Increases (by WMH [NC]) Apr 23, 2019 5:41 AM
       Rent Increases (by S i d [MO]) Apr 23, 2019 5:44 AM
       Rent Increases (by David [MI]) Apr 23, 2019 6:01 AM
       Rent Increases (by Barb [MO]) Apr 23, 2019 6:01 AM
       Rent Increases (by Barb [MO]) Apr 23, 2019 6:03 AM
       Rent Increases (by S i d [MO]) Apr 23, 2019 6:04 AM
       Rent Increases (by Roy [AL]) Apr 23, 2019 6:08 AM
       Rent Increases (by Roy [AL]) Apr 23, 2019 7:25 AM
       Rent Increases (by David [MI]) Apr 23, 2019 7:38 AM
       Rent Increases (by myob [GA]) Apr 23, 2019 8:06 AM
       Rent Increases (by Vee [OH]) Apr 23, 2019 9:13 AM
       Rent Increases (by Ken [NY]) Apr 23, 2019 9:25 AM
       Rent Increases (by S i d [MO]) Apr 23, 2019 10:45 AM
       Rent Increases (by Roy [AL]) Apr 23, 2019 11:13 AM
       Rent Increases (by David [MI]) Apr 23, 2019 11:20 AM
       Rent Increases (by David [MI]) Apr 23, 2019 11:21 AM
       Rent Increases (by Roy [AL]) Apr 23, 2019 11:39 AM
       Rent Increases (by David [MI]) Apr 23, 2019 11:52 AM
       Rent Increases (by Shelby [IA]) Apr 23, 2019 1:39 PM
       Rent Increases (by Roy [AL]) Apr 23, 2019 2:58 PM
       Rent Increases (by Libi [NY]) Apr 23, 2019 4:29 PM
       Rent Increases (by Shelby [IA]) Apr 23, 2019 6:51 PM
       Rent Increases (by Oregonwoodsmoke [ID]) Apr 24, 2019 10:41 AM
       Rent Increases (by cjl [NY]) Apr 24, 2019 12:49 PM
       Rent Increases (by WMH [NC]) Apr 25, 2019 2:33 PM
       Rent Increases (by small potatoes [NY]) Apr 25, 2019 6:37 PM

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Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 4:49 AM
Message:

This morning I scanned my rent rolls and made a short list of tenants who have been with me for at least 2 years and have not had a rent increase. I am trying to get the courage to send these tenants a modest 5% rent increase.

My question is this: why do many LL's (including myself) have a mental block about giving good tenants a rent increase?

--68.63.xxx.xxx




Rent Increases (by NE [PA]) Posted on: Apr 23, 2019 4:54 AM
Message:

Because why rock the boat?

I don't raise on good ones for 2 main reasons. Average tenants leave frequently enough that I don't want to CAUSE vacancy and I raise on mainly on bad tenants as a form of punishment. You're a pita, your rents going up. --174.201.xx.xxx




Rent Increases (by myob [GA]) Posted on: Apr 23, 2019 4:57 AM
Message:

In my mind Roy-- it's laziness! If you keep the status quo you just sit back and wait on the payment.

No new apps no fix up no THINKING.

Rotate tenants like stores rotate stock. Wash rinse repeat to make real money in this every month. Getting fresh tenants every few years is not the burden it's made out o be here.

FYI I'm speaking SFH's here. Where keeping the property fresh has real value returned-- like property values. --99.103.xxx.xxx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 5:01 AM
Message:

NE,

I do the same as you (raise on the PITA's) but from an ethical business standpoint, that is not the correct way to base a rent increase.

I don't want to be one of these LL's who has long term tenants paying the same rent as when they first moved in. It has been said that if you have tenants that never move out, then your rents are too low. Would you agree? --68.63.xxx.xxx




Rent Increases (by NE [PA]) Posted on: Apr 23, 2019 5:04 AM
Message:

Yes I would agree, but as I said average tenants move out frequently enough that I raise to market or lower to market at turnover. As far as raising on bad tenants, I don't care whether it's an ethical business practice or not. I don't think it has anything to do with ethics. I think it has to do with motivating them to do one of two things. Either shut up or move out. --174.201.xx.xxx




Rent Increases (by NE [PA]) Posted on: Apr 23, 2019 5:07 AM
Message:

I think this, in part, can be very area specific as well. For the last four five years, I've been steady at turnover or dropping rent a little bit to get places rented. It does no good for me to raise rents on an existing tenant that's been there and paying for years and keeping the place clean and pays on time all the time when on the flipside of that coin, I'm dropping rent on the unit next door at turn over to get units rented. That doesn't make business sense at all. --174.201.xx.xxx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 5:14 AM
Message:

MYOB,

Among all of your 60? properties,...do you rotate your tenant stock like a retail store does?

I would like to know more on how you do this? In the past, you have stated that you don't like long term tenants,...like after 5 years,...you want them out?

--68.63.xxx.xxx




Rent Increases (by gevans [SC]) Posted on: Apr 23, 2019 5:17 AM
Message:

Build it in to your lease. Make the statement "rents normally increase by a small percentage every year to cover new expenses".

And leave it at that.

When the lease is 60 days from expiration, BASED ON MARKET CONDITIONS, send a notification of rent increase:

Rents are being increased by X percent. If you lock in a new year's lease within XX days, your new rent will be increased by only 1/2 that amount as a reward.

Set up your phone calendar to flag you when the increase letter is due. --173.233.xxx.xx




Rent Increases (by S i d [MO]) Posted on: Apr 23, 2019 5:19 AM
Message:

Fear or laziness say NE and myob.

Which one?

Who cares? Doesn't matter.

This is good timing, Roy. I've got 7 letters going in the mail today for rent raises. Also, I finally took the advice of my good friends Brad 20K and Sisco and changed my lease to auto-renew on a year-to-year WITH an automatic 2.9% rent bump. This eliminates both fear and the laziness. Rent raise happens automatically. It's what we agreed to up front, so all I need to do is send a "reminder" going forward.

"Dear Joe, thanks for being with us for a year. As you know we agreed to a COLA for this year, so your new rent is now $XXX. Thanks!" I'll send that via text: no need to waste stamp.

Btw, yesterday in the mail I got 12 notices of property tax increases from the County. Some of them went up 30%! I HAVE to raise rents or I'll get buried by inflation. --173.20.xxx.xxx




Rent Increases (by David [MI]) Posted on: Apr 23, 2019 5:20 AM
Message:

LL: "When you renew , there will be a $50 rent increase"

tenant: "that seems like a lot, we will have to see if we can afford it or move"

LL: "Let me see what I can do and get back to you"

a few days later ...

LL: "so after reviewing your excellent payment history, we can renew at your current rent" --144.250.xx.xx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 5:32 AM
Message:

Sid,

Where did the 2.9% come from? Is 2.9% the same COLA percentage that the government uses each year for people receiving SS or some other form of government entitlements?

When I raise rents, I want at least 4-5% of the current rent. --68.63.xxx.xxx




Rent Increases (by WMH [NC]) Posted on: Apr 23, 2019 5:41 AM
Message:

Roy if you raise them 2.9% each year, you will end up with more than if you raise 5% every two years, right? With less angst too. --50.82.xxx.xx




Rent Increases (by S i d [MO]) Posted on: Apr 23, 2019 5:44 AM
Message:

2.9% is where Brad and Sisco are. Sorry if it wasn't clear. Seems like a decent increase without being too nuts. If you want 4-5% today, go for it.

I like how raising 2.9% every year will yield a higher rent overall with less sticker shock than one 4-5% raise every 2 years. --173.20.xxx.xxx




Rent Increases (by David [MI]) Posted on: Apr 23, 2019 6:01 AM
Message:

"so your new rent is now $XXX" do you just round to nearest dollar or tens of dollars, or go all the way to the cent $XXX.YY --144.250.xx.xx




Rent Increases (by Barb [MO]) Posted on: Apr 23, 2019 6:01 AM
Message:

I look at local market. Some go up, some donít. How much should your places be based on comps?

Iíve got one that Moved in during June 2016. Paid at the top of the market for the time and house. I canít raise it, based on comps.

What I did do was get them on our PayDay rent plan last year, and sneak in an increase that way. :)

--64.251.xxx.xxx




Rent Increases (by Barb [MO]) Posted on: Apr 23, 2019 6:03 AM
Message:

Also, my lease renewed annually with a 3.5% bumb. Then, about 60 days before that, I renew with a lower rate. Makes me the good guy. ;) --64.251.xxx.xxx




Rent Increases (by S i d [MO]) Posted on: Apr 23, 2019 6:04 AM
Message:

I include the cents. ACH had made this easy. No more messing with carrying around pennies, for me or the tenants. --173.20.xxx.xxx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 6:08 AM
Message:

I know local LL's who are still getting the same rent ($350/month) that they quoted 20 years ago!!! And some of them are right next door to some of my rental properties.

I have all of the courage I need now. 5 of my good tenants are getting 5% rent increase notices today. --68.63.xxx.xxx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 7:25 AM
Message:

Something happened to me yesterday that prompted me to make this rent increase post.

A very good 3 year female tenant called me and said she was giving me her 1 week notice to move on April 30th. I then asked her some probing questions on why she was moving and she said,..."I need more space than this small 2/1 house I rent from you", (she has been paying $625.00 for 3 years). When I asked her how much rent she was going to pay another LL for 'more space',...she answered $700.00. At this point, I felt like a real fool for not raising her rent in previous years.

How would you feel if this happened to you?

--68.63.xxx.xxx




Rent Increases (by David [MI]) Posted on: Apr 23, 2019 7:38 AM
Message:

She is going to pay $75 a month for "more space". I don't see how you could provide "more space" when raising her rent? --144.250.xx.xx




Rent Increases (by myob [GA]) Posted on: Apr 23, 2019 8:06 AM
Message:

Roy I've explained here before how we do it-- no secrets from friends

I have a lease that says 12 months minimum. So dates are picked to suit the rent calendar. I have a rent calendar for the next 24 months. each month has about 7 slots where i place the street name of the property under the month when it will expire in the future.

Out of 12 month cal 3 months have no expirations June, November and December. The 6 or 7 expiration slots are mixed with 2 new renters, two 1st year and 2 seconds. Rent rates are adjusted depending on what year there in with us and the PITA principle mixed in. (in all these years I've only not renewed a tenant for the PITA maybe 3 times but think only 2 times. For example Mar had 7 rentals, april had 9 May we just sent out 7. June will be "0". July will have 6.

Roy we adjust this with 30 or 40 $ increase the first year-- maybe 25 next and then 40 last year to keep up. We have some that are already maxed out so just nuisance increase of 5 or 10. When new carpet is in all rents go max. So a proeprty renting now for 850 will go to 1100.00. --99.103.xxx.xxx




Rent Increases (by Vee [OH]) Posted on: Apr 23, 2019 9:13 AM
Message:

Put it in the lease, you can be selective enforcing it if you choose. --76.188.xxx.xx




Rent Increases (by Ken [NY]) Posted on: Apr 23, 2019 9:25 AM
Message:

when you put a 2.9% increase into the lease automatically what do you do if the rents go up 5% or 10% or more? --72.231.xxx.xxx




Rent Increases (by S i d [MO]) Posted on: Apr 23, 2019 10:45 AM
Message:

Ken....I can still ask for a higher rate or non-renew. "Auto-renew & 2.9% increase" is what happens if neither we nor the tenant give the required 30 days notice.

If my town increases 10%, I say, "10% bump or non-renew"....exactly the same process as if I had had to mail them a randomly chosen rent increase letter because I had no auto-increase.

They key I've found is to set up a 'floor' below which I don't fall. It's sort of like a stop-loss in stock trading.

Auto-renew & increase is the "default" scenario...subject to my view of market conditions at renewal time. --173.20.xxx.xxx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 11:13 AM
Message:

David,

3 years ago, this tenant was paying $550.00 with her previous LL and told me that $625.00 was going to be a struggle for her but she would manage it somehow. And she did. I never increased her rent because I assumed she could not afford anything higher,...stupid me. Live and learn here.

--68.63.xxx.xxx




Rent Increases (by David [MI]) Posted on: Apr 23, 2019 11:20 AM
Message:

Roy, there is a difference between being able to afford something and finding something to be a good value.

Sounds like she's a good negotiator! --144.250.xx.xx




Rent Increases (by David [MI]) Posted on: Apr 23, 2019 11:21 AM
Message:

Now if only auto-renew leases could become self-aware and calculate the new rent amounts.... --144.250.xx.xx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 11:39 AM
Message:

David,

This is an example why some LL's have a mental block about raising rents,...they assume the tenants can't afford anything higher, so the rents just stay the same. --68.63.xxx.xxx




Rent Increases (by David [MI]) Posted on: Apr 23, 2019 11:52 AM
Message:

Roy, if you raised her rent, why wouldn't she move , pay the same rent, and have a larger place? (possible answers are: moving costs, floating a new deposit) --144.250.xx.xx




Rent Increases (by Shelby [IA]) Posted on: Apr 23, 2019 1:39 PM
Message:

I just sent out rent increase letters yesterday to 1/2 my tenants. Only 3% increase and they are both excellent tenants but itís just business. I used to wait for people to move and then up the rent because I feel bad if they canít afford it. But after having a tenant for 6 years that barely made it on ss, she went to a place $200 more a month in rent, I donít pity these people anymore. If they move, great, Iíll up rent more when I advertise it. Itís an easy time of year here. Everyone is looking for a place. --173.26.xx.xxx




Rent Increases (by Roy [AL]) Posted on: Apr 23, 2019 2:58 PM
Message:

Shelby,

$200.00 more in rent? I know the feeling. Any pity I may have had is gone now. At the end of the day, it just all business. --68.63.xxx.xxx




Rent Increases (by Libi [NY]) Posted on: Apr 23, 2019 4:29 PM
Message:

We have a rent increase clause for taxes. (Thank you, Brad).

Mailed a new price and explained the reason.

Only one of the tenants was complaining, but we advise him to call the village and complain to them. We are not getting this money. My argument was even your parking ticket cost more every year. --74.90.xx.xxx




Rent Increases (by Shelby [IA]) Posted on: Apr 23, 2019 6:51 PM
Message:

Yeah Roy, she went from my 2 bedroom no garage to a 3 bedroom with a garage. Her boyfriend moved in, in 2015 and never helped with rent... now at new place heís going to pay the extra $200. Go figure. Oh well, after they left mar 1 I renovated it majorly (new kitchen, floors, paint, doors) and bumped rent up $120. So Iím still glad they moved just kicking myself feeling sorry for her limited income all these years. Should have upped her more than the $30 in 6 years. Wonít happen ever again! --173.26.xx.xxx




Rent Increases (by Oregonwoodsmoke [ID]) Posted on: Apr 24, 2019 10:41 AM
Message:

Small increases every year are unlikely to make tenants move. If you wait 5 years and increase it all at once, then tenants start looking around to see what else is available.

I get the very most I can get when I fill a vacancy and rents are unlikely to have gone up so much in that first year that I can justify a rent increase.

Each year I do a comparison to see what other rentals are going for. The decision is made year by year. --98.146.xxx.xxx




Rent Increases (by cjl [NY]) Posted on: Apr 24, 2019 12:49 PM
Message:

I have a flat fee of $25 in my leases (along with an "auto-renew" for one year). Typically about 2 months/ 60+ days from expiration I look up what is available out in the market, compare them to what I have along with what I'd like to do/ want to do, MUST do to the apartment (not FIX things but upgrade, paint, etc) if they stay or leave, etc.

I then typically will offer about 2-3% increase on the rent. This is usually LESS than the $25 that is in the lease.

If they take it, great. If they move - that's fine too (if I don't want them to move then I may negotiate with them). IF they do move I typically will do what I want in the apartment after they move out and raise the rent more than what I offered as long as it's not out of whack. Sometimes I do just to see if someone will pay it - if not and I'm really ready to have someone in there - I'll drop it if I want/need to.

Last year I had two leave in the same building - I raised one $10 and the other I raised $15. Two years ago I had one leave and I repainted the entire apartment, put in new flooring and I raised the rent $25. I didn't increase them last year and this year I was increasing them $10. They decided to move because they wanted to purchase a house in the "near future". The moved out and I posted the rent at $15 higher (didn't do anything to the apartment except fix a leaky faucet that I noticed).

That's taken and another one is vacant but I'm hopeful that the other one that JUST came on is taken by the girl I showed it to today :) (I didn't increase the rent since it's pretty much at the market rate right now). In addition, I don't want to rock the boat in getting them too high. Overall, I've owned them for about 6 years and we're $235 higher (gross) per month. Not bad!

I hate leaving money on the table unless it's a tip for the waiter/waitress :) --69.201.xx.xxx




Rent Increases (by WMH [NC]) Posted on: Apr 25, 2019 2:33 PM
Message:

So I just altered my Master Lease to say if they stay M2M their rent goes up 10% but if they sign a new lease the rent only increases $25. --50.82.xxx.xx




Rent Increases (by small potatoes [NY]) Posted on: Apr 25, 2019 6:37 PM
Message:

when I inquired last year? about automatic rent increases in the lease, the consensus was not to do it because you want flexibility in calculating the increase, or may not want to increase the rent.

I increase rents on 1st year tenants, say hey costs go up, make it in the $25 range. Then they are accustomed to it. My places are nicer so rent is already near the cap for my area. Values increased the 2 prior years, but seems like the market is stalling now. --100.2.xx.xxx



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