Do you give a reason? (by Roy [AL]) Apr 9, 2021 10:01 AM|
Do you give a reason? (by Oregon Woodsmoke [ID]) Apr 9, 2021 10:26 AM
Do you give a reason? (by Robert,OntarioCanada [ON]) Apr 9, 2021 10:28 AM
Do you give a reason? (by Jim in O C [CA]) Apr 9, 2021 10:44 AM
Do you give a reason? (by Patrick [VA]) Apr 9, 2021 10:47 AM
Do you give a reason? (by S i d [MO]) Apr 9, 2021 11:37 AM
Do you give a reason? (by Roy [AL]) Apr 9, 2021 12:31 PM
Do you give a reason? (by Sorta Blonde [CA]) Apr 9, 2021 12:45 PM
Do you give a reason? (by Sisco [MO]) Apr 9, 2021 2:06 PM
Do you give a reason? (by T [IN]) Apr 9, 2021 2:15 PM
Do you give a reason? (by Barb [MO]) Apr 9, 2021 3:05 PM
Do you give a reason? (by JB [OR]) Apr 9, 2021 3:14 PM
Do you give a reason? (by Vee [OH]) Apr 9, 2021 6:20 PM
Do you give a reason? (by BRAD 20,000 [IN]) Apr 10, 2021 1:14 AM
Do you give a reason? (by Roy [AL]) Apr 10, 2021 6:42 AM
Do you give a reason? (by LisaFL [FL]) Apr 10, 2021 9:01 AM
Do you give a reason? (by Jim [OH]) Apr 11, 2021 4:19 PM
Do you give a reason? (by Tim [CO]) Apr 11, 2021 6:30 PM
Do you give a reason? (by mike [CA]) Apr 14, 2021 10:55 AM
Do you give a reason? (by Phil [OR]) Apr 20, 2021 11:01 AM
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Do you give a reason? (by Roy [AL]) Posted on: Apr 9, 2021 10:01 AM
My lease does not mention anything about rent increases but that is not a big deal. When I feel a modest rent increase is justified, I type out a very short letter stating the facts and mail it to them.
* Your rent will increase by $25.00 and will be due on May 1st, 2021.
Today, I mailing out 8 of these letters.
Question: Do you ever give a reason for the increase? Have you ever had a tenant call you and say, "Why did I get a rent increase?
Do you give a reason? (by Oregon Woodsmoke [ID]) Posted on: Apr 9, 2021 10:26 AM
You don't have to. I think that tenants expect to have the rent increased.
I also think that a rent increase makes them angry, so it doesn't hurt to sooth their feelings a little bit.
A lot depends upon how you relate to your tenants. I have a cordial relationship with my tenants, so I would give them a valid reason for increasing rent. If your tenants wouldn't know you if they saw you, then you aren't losing anything by being more curt and businesslike. --76.178.xxx.xxx
Do you give a reason? (by Robert,OntarioCanada [ON]) Posted on: Apr 9, 2021 10:28 AM
Every year operating costs go up which are property tax, utilities that included in rent, materials, labour costs, garbage disposal where can not cut maintenance or repairs. So it is better to include why a rent increase is necessary. --99.236.xxx.xxx
Do you give a reason? (by Jim in O C [CA]) Posted on: Apr 9, 2021 10:44 AM
I always give a reason Because many renters donít understand that the landlord has to pay property taxes, insurance and make repairs. The cost of lumber in California has almost doubled in the last year which has caused an increase in homeowners insurance in the event of a rebuild. --99.23.xxx.x
Do you give a reason? (by Patrick [VA]) Posted on: Apr 9, 2021 10:47 AM
I find it better to put the increase in the lease.
One of my clauses says the Landlord will increase the rent not to exceed 8% after the first year. I usually increase only 5% so they are much happier. --70.169.xx.xxx
Do you give a reason? (by S i d [MO]) Posted on: Apr 9, 2021 11:37 AM
The beauty of a lease with an auto-increase is there's not a need for discussion or reasons. We already agreed to it when they signed the lease. I send a reminder that rent is going up as of (fill in the date) per our lease agreement.
P.S. I can ask for more if I give notice that we aren't renewing at the present lease terms, but I never accept less than the pre-agreed amount. --107.216.xxx.xxx
Do you give a reason? (by Roy [AL]) Posted on: Apr 9, 2021 12:31 PM
In one of the 8 letters I am about to mail, one tenant is getting a PITA rent increase which is more than $25.00.
Jim - Your tenants and mine do not give a hoot about the cost of lumber or homeowners insurance. --68.63.xxx.xxx
Do you give a reason? (by Sorta Blonde [CA]) Posted on: Apr 9, 2021 12:45 PM
I used to send a nice letter and give the reasons (insurance costs, water rates up, etc.) and then I found the Tenants were asking HOW MUCH did those things increase. I guess they wanted to calculate the increase amount and have me justify it. After a few times of playing 20 questions, I now just send a letter with the heading "Annual Rent Increase" and then state the amount and date of the new rent amount. Works much better. No one has questioned me on it. I even send the same letter to those who are NOT getting an increase and put the increase amount as Zero. Makes it more uniform and I'm sure the ones who get the zero increase letter feel really good after the initial fear of how much is it going to be? I increase rents on Jan 1 of each year and notify all tenants by the end of October just to give them 2 months to make up their mind if they want to move out. --72.197.xx.xx
Do you give a reason? (by Sisco [MO]) Posted on: Apr 9, 2021 2:06 PM
I too utilize the auto increase, no explanation of rising costs. --67.43.xxx.xxx
Do you give a reason? (by T [IN]) Posted on: Apr 9, 2021 2:15 PM
3 yrs ago I gave a rent increase and stated it was strictly because of the school referendum. But I also sent a letter about 30 days prior to the vote to warn them.
Otherwise, not really. I did my last increase and just stated what newly open units are renting for. Not one person complained.... --174.228.xx.xxx
Do you give a reason? (by Barb [MO]) Posted on: Apr 9, 2021 3:05 PM
I usually reference the taxes and insurance costs.
This year, I referenced the bond issue that was passed for the schools. I gave my people 90+ days notice.
I have an auto-increase built into the lease, but I've been consistently increasing LESS than the auto-increase. I also look at comps on various sites and for a couple of places, I'm not increasing because I'm already charging the going rate. --67.43.xxx.xxx
Do you give a reason? (by JB [OR]) Posted on: Apr 9, 2021 3:14 PM
I use the rent increase letters as a time to:
Point out what is expected of them and what will help to keep their increases to a minimum. For example, taking care of the yard, general cleanliness, taking care of small maintenance items themselves, etc.
Sometimes point out increased insurance, taxes, maintenance and labor costs, etc. as reasons for the increase.
Gives me a chance to remind them of things they may be deficient in and letting them know that this can and will effect rental increases.
I often compliment them on what they are doing well and remind them of things they should be doing better...relating it all back to keeping their rent as reasonable as possible.
Do you give a reason? (by Vee [OH]) Posted on: Apr 9, 2021 6:20 PM
If they comment it is taxes, library increase, school increase - it does not take long to arrive at a logical explanation why the cost of living jumps everywhere in the USA. --76.188.xxx.xxx
Do you give a reason? (by BRAD 20,000 [IN]) Posted on: Apr 10, 2021 1:14 AM
Yes my letter includes a soft sales pitch to soften the sting. Without it I look like a money hungry Snively Whiplash.
ďAs you know prices on everything have gone up - especially on those unseen expenses like the new school referendum tax, property taxes, insurance, and labor.Ē
I know they donít care but it helps validate the increase.
We include a copy of the lease page with the automatic 2.9% Cost of Living increase each year with their initials on it. Hard to argue with that.
Jeffreyís clause about ďif you feel you cannot afford this please tell us what you can afford.Ē We put the ball in their court. They feel some control amd less bullying.
Do you give a reason? (by Roy [AL]) Posted on: Apr 10, 2021 6:42 AM
When my primary residence insurance company increases my rates, they don't even mail me a notice. I only find out when my mortgage Escrow account needs to be replenished with more cash.
ďif you feel you cannot afford this please tell us what you can afford."
Why do Landlords 'baby or spoon-feed their tenants' with the above statement? I see this a lot with young tenants who have only rented apartments before and are trying to rent their first house from me.
They say things like- "You mean I have to pay my own power bill now?" Yep. And even my water bill too? Yep.
And you have to mow the lawn once a week too. "Oh,...no,...that is not fair. You must be a slumlord or something". --68.63.xxx.xxx
Do you give a reason? (by LisaFL [FL]) Posted on: Apr 10, 2021 9:01 AM
I used to give explanations, especially before when I didnít routinely do increases. Doing them annually becomes expected and I keep it short and sweet. I just send a renewal notice giving them the option to agree to the new price and term or chose to vacate.
I will be doing some more major increases this year and will give 90 days notice. I may add something explaining that I understand the increase is larger than usual so I wanted to give them an extra long notice in the event it exceeded their budget and they found themselves needing to move.
I hope they move because I want to sell. But if they donít at least I will be creeping up to closer to market rent. Mine are too far below and costs are increases in all areas at a greater rate so Iím not willing to subsidize to such an extensive degree anymore.
When you just donít care if they move it is very easy. I even plan to do my first non-renewal ever to a six year tenant because Iím tired of dealing with them. They arenít that bad but these days if you arenít an absolutely mint tenant, Iím done with you. --75.89.xxx.xxx
Do you give a reason? (by Jim [OH]) Posted on: Apr 11, 2021 4:19 PM
Do not give a reason. Raise the rent and proceed forward.
Some day when you want to sell that rental, the rent will be part of the formula used to determine the selling price that the market will bear. --184.57.xxx.xx
Do you give a reason? (by Tim [CO]) Posted on: Apr 11, 2021 6:30 PM
My leases are all month to month. Since I only raise rents yearly if Iím keeping them, I tell residents Iíve passed up 11 times I would have made an increase as ďyou know cost donít just go up once a yearĒ. Increases are always a $50 or 100. Iíve never had one move due to an increase. Right now thereís nothing available so they ainít moving anyway. Just sent 2 @$100 no problem, 2 more coming up on another anniversary soon.. --71.211.xxx.xx
Do you give a reason? (by mike [CA]) Posted on: Apr 14, 2021 10:55 AM
im with you tim, my mtm's have sometimes gone several years w/o rent bumps. not any more. we have typical expenses rise with taxes and upkeep, this year we're paying more for fuel and lumber...if they complain i tell 'em they can vote their pocketbook next time but until then i will not be justifying my actions for any of them --75.80.xx.xx
Do you give a reason? (by Phil [OR]) Posted on: Apr 20, 2021 11:01 AM
Just sent out 30 rent increase. I have a standard notice that says our costs have gone up due to increase in insurance, taxes and maintenance. I also say that the new rent is competitive with any comparable rental in the area. On the back of the notice I provide a copy of HUD fair market rent for the area. After I started providing the information, I have had almost no turnover. We give a 90 day (or more) advance notice. --97.115.xx.xxx
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