Rent Raise Response (by NE [PA]) Feb 25, 2021 11:20 AM|
Rent Raise Response (by S i d [MO]) Feb 25, 2021 11:39 AM
Rent Raise Response (by WMH [NC]) Feb 25, 2021 11:42 AM
Rent Raise Response (by WMH [NC]) Feb 25, 2021 11:56 AM
Rent Raise Response (by plenty [MO]) Feb 25, 2021 12:03 PM
Rent Raise Response (by RB [MI]) Feb 25, 2021 12:05 PM
Rent Raise Response (by Sisco [MO]) Feb 25, 2021 12:07 PM
Rent Raise Response (by Ken [NY]) Feb 25, 2021 12:20 PM
Rent Raise Response (by Sorta Blonde [CA]) Feb 25, 2021 1:53 PM
Rent Raise Response (by Johnny B. [MA]) Feb 25, 2021 2:17 PM
Rent Raise Response (by Nicole [PA]) Feb 25, 2021 3:05 PM
Rent Raise Response (by Busy [WI]) Feb 25, 2021 3:13 PM
Rent Raise Response (by cjl [NY]) Feb 25, 2021 3:25 PM
Rent Raise Response (by LisaFL [FL]) Feb 25, 2021 4:50 PM
Rent Raise Response (by razorback_tim [AR]) Feb 25, 2021 6:05 PM
Rent Raise Response (by NE [PA]) Feb 25, 2021 6:30 PM
Rent Raise Response (by Dave [MO]) Feb 25, 2021 6:31 PM
Rent Raise Response (by Nicole [PA]) Feb 25, 2021 6:53 PM
Rent Raise Response (by JR [ME]) Feb 25, 2021 6:53 PM
Rent Raise Response (by NE [PA]) Feb 25, 2021 6:55 PM
Rent Raise Response (by Ray-N-Pa [PA]) Feb 25, 2021 7:14 PM
Rent Raise Response (by MikeA [TX]) Feb 25, 2021 10:41 PM
Rent Raise Response (by Jose [CA]) Feb 25, 2021 10:45 PM
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Rent Raise Response (by NE [PA]) Posted on: Feb 25, 2021 11:20 AM
I have sent out the "choose your own rent raise" letter many times with great success. I have never gotten one back with a $0 increase until now. They have all been acceptable responses. Well, today I got back one heck of a response.
Pre-story, tenant in unit 8 years with no increase. Market has stayed pretty normal comparatively until last year or so. She's roughly $100 under market now.
Here is her response:
"I am not comfortable with any rent increase. I am the only income in the home. With the pandemic of 202 + ongoing, I cannot afford any increase. I have a daughter in college and pay her tuition as a single parent. Also, on your letter it stated that comparable rents are $725-$750 (they are) with some or all utilities included. No utilities are included here. Garbage is paid by me, lights and heat are paid by me and the mowing and snow plowing is abysmal at best." (We hire professional (not cheap) companies for both snow and mowing. We also pay water, sewer, lawn care and snow plowing)
She goes on to say: " There are no laundry facilities/ no hook onsite." (She was offered to have one installed with new plumbing, electric and the machines a few years ago with a small rent increase and she declined.)
I have been an excellent tenant, no problems, not complaining and paying on time every month since day one.
Granted, she has been a great paying tenant. Granted, she doesn't really complain, but when she has a problem its like the world is ending. She freaks out over the smallest stuff until I basically tell her that if shes not happy with the response to pack her cRaP and get out. She simmers down.
Now I'm left with 2 choices, what rent increase I am giving her or am I giving her a notice to vacate. Hahahaha.
I see it deteriorating from this point forward. Backing down to her response will be just as bad as raising it our own amount.
For her to send back NO increase, not even $10 that she chose herself, along with a letter smashing our existence, is not acceptable.
The rents going up or shes moving out.
Going forward, will I use the self raise rent letter?? Yes, 100%! They have worked very well. Just wanted to share this clowns response with you all. --70.44.xxx.xx
Rent Raise Response (by S i d [MO]) Posted on: Feb 25, 2021 11:39 AM
Raise it $100. If not accepted, she moves. Housing is expensive now, and she won't find anything comparable.
I find it interesting how people lay out their laundry list of "reasons" why they can't pay more. Blah blah blah....so I'm supposed to tell my plumber and the city that I'm not going to accept their rate increases? Um, no.
That may be one reason why I stopped using the "raise it yourself" letter. I've not had as good of luck with them as you. I tried it 6 (maybe 7?) times, and each time people came back with $0 or $5 tons of excuses and let me know how dissatisfied they were.
Now, due to the automatic 2.9% increase built into our lease, the increase is already done. There's nothing to discuss, no letters to mail, no waiting for them to lose it/ignore it. If market goes higher, I can always request more or non-renew their lease. Otherwise, 2.9% automatically kicks in and I send a courtesy reminder so they can keep tabs. Works out to $15-$20 annually on most of my units.
I'm glad it works well for you. Maybe I don't have the magic touch, or maybe I'm just lazy. Maybe both. ;-P --107.216.xxx.xxx
Rent Raise Response (by WMH [NC]) Posted on: Feb 25, 2021 11:42 AM
Thanks for your response. It appears you are really not happy with the facilities, or with the utilities that ARE included such as water, mowing and professional snow plowing services.
As I'm sure you are aware, nothing has stayed the same price for 8 years. Including insurance, taxes, maintenance fees and materials.
Since you are about $100 per month under market at this point, that would have been a rent increase of $12.50 per month had we done regular increases, as we should have.
So why don't we compromise on a $12.50 month increase moving forward?
If this doesn't work for you, of course you are free to give notice and move somewhere more in your price range." --50.82.xxx.xxx
Rent Raise Response (by WMH [NC]) Posted on: Feb 25, 2021 11:56 AM
My rent raise, now built in, says, "If a new lease is offered and signed, rent will only go up $25 per month. If Tenant stays on month to month, rent will go up 10% until a new lease is signed or Tenant gives proper notice and moves." --50.82.xxx.xxx
Rent Raise Response (by plenty [MO]) Posted on: Feb 25, 2021 12:03 PM
I like WMH response. I would us the first part and put Second Notice. (Lets try this again) pick an amount or the management company will increase your rent to market rate of $XXX.00.... For a long term tenant I'd give her a second chance to pick her increase or move. --172.58.xx.xxx
Rent Raise Response (by RB [MI]) Posted on: Feb 25, 2021 12:05 PM
They come in all sizes, NE.
Working my exit plan,
my Tenants have all been as quiet as Church Mice.
Kinda funny how that works.
I rack up the number of pool balls, for the number
of rentals I have left.
Last ball in gets the Boot / Notice.
Sure I give them all the right to first refusal.
A 6 year Tenant happened to be the 12 ball in the side
who decided to get a loan and stay put. $old !
No polishing that Pig.
Life goes on until it don't!
Rent Raise Response (by Sisco [MO]) Posted on: Feb 25, 2021 12:07 PM
Raise rent $100, new lease with auto renewal with increase built in. Whether she stays or goes, you arenít managing your business well by being $100 under market. --67.43.xxx.xxx
Rent Raise Response (by Ken [NY]) Posted on: Feb 25, 2021 12:20 PM
I would havetold you i dont want to pay an increase either if i were your tenant.I can play reverse psychology too --72.231.xxx.xxx
Rent Raise Response (by Sorta Blonde [CA]) Posted on: Feb 25, 2021 1:53 PM
Interesting Tenant. Sounds like she could be difficult to work with, but if this was my situation, I'd send a letter that said: "You made some good points in your response, and you have been here 8 years, so what I will agree to is no rent raise for now, but in 6 months, if you are still here, the rent will increase by X-dollars." Make it a tidy sum.
This will shift the burden of 'moving' to her, no notice needed by you, no nasty comments to further get her upset. I like to avoid conflict. Use Psychology on her and let her think she's winning. She will be so happy for awhile. At the end of the 6 months, you will either have no tenant (her choice), or extra rent that will cover the missed 6 months you gave her to decide. --68.8.xx.xx
Rent Raise Response (by Johnny B. [MA]) Posted on: Feb 25, 2021 2:17 PM
I like the self raise letter. I got the idea on this forum, likely from you NE. But I only use it for great tenants, if they arenít great, then I tell them what their increase is. Iíd send her back a letter letting her know what the increase is, but to salvage the relationship it these non-friendly LL times, Iíd offer her an upgrade to the unit - maybe paint a room, or one new appliance, or put in the utilities for washer/dryer and she can buy her own units. --73.186.xxx.xxx
Rent Raise Response (by Nicole [PA]) Posted on: Feb 25, 2021 3:05 PM
that letter would never work for my tenants.
After 8 years of basically no issues, I'd want her to stay. I'd use the above that says nothing now but in six months $20. With her, you know what you've got. Trying to find a new tenant now may be difficult and you have no idea who (or perhaps what) you'll be getting.
OR - if this is a single family property, tell her no increase but she is responsible for snow & basic lawn mowing.
As you know, daughter in college has nothing to do with you - kid could work, father could pay, student loans, etc.
I don't think giving a second chance will help - she'll either say $1.00 to be a smart tush or else say $5.00 thinking that's fair.
Rent Raise Response (by Busy [WI]) Posted on: Feb 25, 2021 3:13 PM
RB, that is an awesome plan to pick the next one! Lol! --70.92.xxx.xxx
Rent Raise Response (by cjl [NY]) Posted on: Feb 25, 2021 3:25 PM
In "today's" mindset and with the pandemic, etc (I know, I know) I don't know if I would give them the choice to pick what the increase would be UNLESS you state something such as "$0 is not an option".
Give them the options - with NONE not being one of them. If you do that now, then she didn't follow the rules.
I've thought about doing this but I think just increasing with an amount works at this time (for me). I've only had one push back (many years ago) and that's because she was the only one working at the time (adult daughter lived there with her but didn't have a job) and there were many other kids in the house. So I said "fine" and didn't increase her THAT YEAR. The next year I did and she paid it with no issue.
FYI - I've sent rent increases out for the ones that were due and they all have signed (immediatley) and sent them back with a "yes, we agree to the new amount". Only one guy texted me and was complaining but he drinks and he always goes off when I increase the rent. He wants to buy a house but never saves. I just told him "then buy a property". His wife texts me and says "we're staying and if I have to sign his signature then I will ..."
Rent Raise Response (by LisaFL [FL]) Posted on: Feb 25, 2021 4:50 PM
If I had that reply I would pick the minimum increase Iím willing to accept. And then Iíd do this:
I understand your position but our costs increase each year and we must raise rents each year in order to keep up with them. Your increase will be $20. I will give you the option (option 1) to accept this increase and renewal for a 1 year term.
As an alternative I will offer you a 6 month renewal term (option 2) with a $10 a month increase. This will give you time to shop around and see if you are able to find something more affordable that meets your needs.
At the end of the six month term (option 2) you will have the option to renew for an additional six with an additional $30 rent increase at that time.
And then Iíd give a deadline to respond in writing and tell you if she wants to move at the end of the current lease term, wants a fixed rate 1 year renewal or opts for the 6 month renewal so she can ponder her long term plans without being locked in for a full year.
If she picks a 12 month term with a $20 increase thatís $240 to you.
If she picks the six month option for $10 thatís $60 but then she leaves and you can rerent for market value.
If she picks six months at $10 and opts to renew for an additional six months thatís $300 to you.
She may still not be happy but people are happier when given choices and this gives her several choices.
Rent Raise Response (by razorback_tim [AR]) Posted on: Feb 25, 2021 6:05 PM
I had one that replied with $0.00 but didn't give the long story yours told. I called them and said zero is not an option. You can either re-propose or we will bring the rent to the Zestimate from Zillow, which I knew was too high. They quickly agreed to $25/mo. which was good enough for me. In this case given the story she told I probably raise her to $750.00 and go on. She had her chance, now it's your turn. --70.178.x.xx
Rent Raise Response (by NE [PA]) Posted on: Feb 25, 2021 6:30 PM
I think I'm going to blend all these responses together and give her a $50 rent raise in four months. And thank her for her eight years of OnTime payments and tell her that we appreciate her long-term tenancy as much as we appreciate our even longer-term contractors who service all of our snow and grass. --70.44.xxx.xx
Rent Raise Response (by Dave [MO]) Posted on: Feb 25, 2021 6:31 PM
How much of an increase are you wanting, $100?
If thatís the number I would increased it that much but at the same time she will probably move.
For me the increase is to make it a benefit without them moving out and have the cost of updates and repairs.
I would increase it $35 and if she stays good if not no big deal.
Increasing in smaller amounts every year $15 to $25 with a 30 day written notice. --173.216.xxx.xx
Rent Raise Response (by Nicole [PA]) Posted on: Feb 25, 2021 6:53 PM
I'm guessing that is an 8% increase. Sounds fair if you spell it out in writing that is equivalent of 1% a year which saved her $xx (I'm not doing the rough math).
I'd say she is on her way out since she is a "woe is me, pandemic, single mother, crappy unit, etc" victim. --72.70.xxx.xxx
Rent Raise Response (by JR [ME]) Posted on: Feb 25, 2021 6:53 PM
These pick your increase letters seem screwy to me. I provide the rental, I set the price.
Pretty much everything I buy has a price set by the seller. The gas station attendant doesnít ask me how much I feel like paying today. When I buy a car there is some negotiation, but I donít get to just pick any amount I like to drive off in the dealerís car. --98.13.xx.xxx
Rent Raise Response (by NE [PA]) Posted on: Feb 25, 2021 6:55 PM
I don't want the $100. I send out the comps so they know what they'll be looking at spending if they move. I'd be happy if she sent back $25-$30. I'd ven take $20 with the explanation. But to say nothing and to beat the place up and insult the service people? That's pretty low.
Maybe I should send in the letter that we would've accepted $20-$30, but now it's going to $50. --70.44.xxx.xx
Rent Raise Response (by Ray-N-Pa [PA]) Posted on: Feb 25, 2021 7:14 PM
Let her use her own words against her.
Thank you Mrs Tenant for your input. Indeed you pay for X, y and z over the past 8 years. And during that time you have probably noticed that the cost of doing business has gone up. Not only only have your cost went up but the following cost have also gone up: Your taxes have went up XXX. Your insurance have increased by XXX and the debt service payment went up XXX.
We absolutely appreciate that you contact us only when you have a valid concern That pattern has spared you thus far of any previous rent increases. However, we are at a point where we can not cut corners to shave cost any further. Based on your excellent payment history, we will increase rent to XX if you are able to _____________________. Please let us know if this is acceptable or not. If this is not acceptable, the laws of economics apply. Please provide us with your scheduled move out date. We will gladly provide you a favorable reference for your future LL --24.154.xx.x
Rent Raise Response (by MikeA [TX]) Posted on: Feb 25, 2021 10:41 PM
If you are good with $50/month now, go ahead and plant the seed for the future. Something like...
Dear tenant, we understand your situation. Unfortunately, we can no longer cover the increased costs that have been passed along to us in higher taxes, insurance, and maintenance. Effective May 1 a monthly increase of $50 will go into effect. We will strive to keep increases manageable while your daughter is in school. Once that financial burden is lifted, we hope you understand that we will need to work with you to bring your rent more in line with the market rates. --68.10.xx.xxx
Rent Raise Response (by Jose [CA]) Posted on: Feb 25, 2021 10:45 PM
The tax man . Utility companies.Contractors and material suppliers donít let me choose what I want to pay. And is better to do a small increase every year if rent is under market. --172.58.xx.xxx
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