Rent increase stats (by BRAD 20,000 [IN]) Nov 18, 2020 2:05 AM|
Rent increase stats (by Steve [MA]) Nov 18, 2020 6:01 AM
Rent increase stats (by Nicole [PA]) Nov 18, 2020 7:25 AM
Rent increase stats (by Steve [MA]) Nov 18, 2020 8:21 AM
Rent increase stats (by Ray-N-Pa [PA]) Nov 18, 2020 9:14 AM
Rent increase stats (by S i d [MO]) Nov 18, 2020 9:35 AM
Rent increase stats (by Oregon Woodsmoke [ID]) Nov 18, 2020 11:15 AM
Rent increase stats (by Oregon Woodsmoke [ID]) Nov 18, 2020 11:24 AM
Rent increase stats (by WMH [NC]) Nov 18, 2020 11:37 AM
Click here to reply to this discussion.
Click Here to send this discussion to a friend
Rent increase stats (by BRAD 20,000 [IN]) Posted on: Nov 18, 2020 2:05 AM
Found this on the web:
Nationwide average rents increased 6.82% over the last 3 years as of 2019. I expect it to be higher fro 2020.
Nationwide average rent is 20.5% of total income. Has been approximately this figure for the past several years.
Rent increase stats (by Steve [MA]) Posted on: Nov 18, 2020 6:01 AM
Each year we analyze how much our normal operating costs go up. This includes things like W&S fees, rubbish fees, insurance cost, minor maintenance costs, general supplies, common area utilities, accounting fees, inspection fees, pest control, alarm fees, management fees, etc. Over the last 10 years it's averaged between 2% & 2.5%. This year it's on track to be closer to 3.5%. I'm sure the increase is due to the extra expense of dealing with Covid 19 issues like extra cleanings, cost of PPE, increase rubbish and W&S fees as a result of tenants being home a lot more.
We use this data to determine how much to raise the rents to maintain at least the same level of return on our investment as the previous year. Normally we send out rent adjustment notices 60 days prior to the start of their effective date. So far this year with the exception of a few tenants, we haven't given out any increase notices. Mostly we did this to avoid turn overs & because I know that we can afford to do it more than any of our tenants. I'm still not sure if it was a wise or even the correct decision. I do now that all of my tenants have continued to pay their rent in full & on time in accordance with our rental agreements. As it stands now we are on track to make the same level of profit as we did last year. This is due to the few increased we did but mostly to the substantial increase we got for a couple of turnovers. Even though all of are rents were at or above market rent back at the start of 2020, rents in my area have sky rocketed. I attribute this to people moving from the city & the lack of decent housing in the areas that we own. --71.174.xxx.xx
Rent increase stats (by Nicole [PA]) Posted on: Nov 18, 2020 7:25 AM
Steve, what about a notice to tenants if they pay on time for the next year a covid courtesy will be given with no increase of $xx per month but if they are late, normal increase (the one forgiven for covid) of $xx will begin the following month for the remainder of the lease term. --72.70.xxx.xxx
Rent increase stats (by Steve [MA]) Posted on: Nov 18, 2020 8:21 AM
Nicole, in MA a LL can't access a late fee until the rent is 30 days late by which time the non payment process normally would have started. We also can't offer a lower rent for on time or early payment. This is why it's so important for all LLs to know, understand & comply with their local LL / tenant laws & regulations. --71.174.xxx.xx
Rent increase stats (by Ray-N-Pa [PA]) Posted on: Nov 18, 2020 9:14 AM
I like that thinking......please be responsible and we will reward you since you are making our lives less stressful.
Sugar does work better than vinegar (and over the years, I have had to drink plenty of vinegar in the military) --24.101.xxx.xx
Rent increase stats (by S i d [MO]) Posted on: Nov 18, 2020 9:35 AM
One thing this MidWestern LL has noticed....the areas with the highest rents are also the areas with the most stringent controls and regulation of rentals. Chicken or egg?
We do the same as Steve as far as analyzing costs of doing businesses, but ultimately it comes down to analyzing our competition. If 3 vacancies on my street are charging $700 and I'm charging $600....my rent goes to $700. Tenant cannot move to save money unless they downsize, and if they do move I refresh and within 8-10 months I've recouped every dime and the gravy train keeps flowing. No reason to leave money on the table. --107.216.xxx.xxx
Rent increase stats (by Oregon Woodsmoke [ID]) Posted on: Nov 18, 2020 11:15 AM
Of course I keep track of my expenses, but my rents are pretty much set by what other landlords are charging. Usually.
Rents are going up here, but I am reluctant to rock the boat. So far my tenants are all excellent, easy to work with, and paying well. I'd prefer to keep them instead of taking the risk of new tenants.
Rent increase stats (by Oregon Woodsmoke [ID]) Posted on: Nov 18, 2020 11:24 AM
In my extended area, all local towns total, there are 34 rental ads on Craigslist, only 9 of those are free standing houses and 7 of those ads are for rentals wanted. Possibly some of the apartment ads are repeats.
I don't think it would be difficult to re-rent. The difficulty would be with finding quality tenants.
Lots and lots of people trying to move into this area. Difficult to screen and no history of supporting themselves on the local economy.
Another problem with the people trying to move in is that they are coming from progressive places like Seattle and many have that Seattle attitude that isn't easy for landlords. --76.178.xx.xx
Rent increase stats (by WMH [NC]) Posted on: Nov 18, 2020 11:37 AM
"The difficulty would be with finding quality tenants." Yes. This. We can price ourselves out of the market by going too high.
That is common here: people look at a few ads on FB or CL and assume there's a ton of tenants who can afford the high prices on large homes that are being advertised. Not true.
My research (my pre-screening and applications) indicates there are few renters who can afford the higher prices, so if you have a higher-end or more expensive rental you are always competing with other housing providers for the same few prospects. Or having to fill the place with less desirable renters.
Our houses are unique: they are small and affordable BUT completely fixed up and clean. We hear it all the time: "This is the nicest place we have looked in this price range." Good. --50.82.xxx.xxx
Click Here to send this discussion to a friend
Report discussion to Webmaster