Rent Increase
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Rent Increase (by Lew [NC]) Jul 28, 2021 2:51 PM
       Rent Increase (by bet [MA]) Jul 28, 2021 3:14 PM
       Rent Increase (by Rosie [VA]) Jul 28, 2021 3:33 PM
       Rent Increase (by Sisco [MO]) Jul 28, 2021 3:36 PM
       Rent Increase (by 6x6 [TN]) Jul 28, 2021 3:45 PM
       Rent Increase (by Lynn [MA]) Jul 28, 2021 4:10 PM
       Rent Increase (by MC [PA]) Jul 28, 2021 4:20 PM
       Rent Increase (by BRAD 20,000 [IN]) Jul 28, 2021 4:22 PM
       Rent Increase (by WMH [NC]) Jul 28, 2021 4:40 PM
       Rent Increase (by Pmh [TX]) Jul 28, 2021 5:26 PM
       Rent Increase (by Vee [OH]) Jul 28, 2021 5:28 PM
       Rent Increase (by Robert,OntarioCanada [ON]) Jul 28, 2021 7:41 PM
       Rent Increase (by dave [CA]) Jul 28, 2021 9:25 PM
       Rent Increase (by dave [CA]) Jul 28, 2021 9:25 PM
       Rent Increase (by Dee Ann [WI]) Jul 28, 2021 10:35 PM
       Rent Increase (by Sandra [AZ]) Jul 29, 2021 5:26 AM
       Rent Increase (by Still Learning [NH]) Jul 29, 2021 7:51 AM
       Rent Increase (by JB [OR]) Jul 29, 2021 12:12 PM
       Rent Increase (by Oregon Woodsmoke [ID]) Jul 29, 2021 2:14 PM
       Rent Increase (by Ray-N-Pa [PA]) Jul 29, 2021 6:44 PM
       Rent Increase (by Jim in O C [CA]) Jul 29, 2021 7:04 PM
       Rent Increase (by plenty [MO]) Jul 29, 2021 7:22 PM
       Rent Increase (by Tim [CO]) Jul 31, 2021 12:22 PM
       Rent Increase (by Bobbie J [CA]) Aug 3, 2021 12:54 PM
       Rent Increase (by Jonathon [CA]) Aug 3, 2021 1:48 PM
       Rent Increase (by mike [CA]) Aug 3, 2021 2:21 PM
       Rent Increase (by Harry [MA]) Aug 3, 2021 3:05 PM
       Rent Increase (by Jonathon [CA]) Aug 3, 2021 3:39 PM
       Rent Increase (by Jacqueline [NY]) Aug 3, 2021 3:45 PM
       Rent Increase (by mike [CA]) Aug 3, 2021 3:45 PM
       Rent Increase (by Jonathon [CA]) Aug 3, 2021 4:41 PM
       Rent Increase (by Joe [CA]) Aug 3, 2021 5:03 PM
       Rent Increase (by jonathon [CA]) Aug 3, 2021 5:06 PM
       Rent Increase (by Wayne [CA]) Aug 3, 2021 5:52 PM
       Rent Increase (by Honey [LA]) Aug 3, 2021 11:55 PM
       Rent Increase (by mike [CA]) Aug 4, 2021 2:25 PM
       Rent Increase (by Jonathan [CA]) Aug 4, 2021 3:36 PM
       Rent Increase (by Guilty Too [AZ]) Aug 5, 2021 12:51 PM
       Rent Increase (by Lori [CT]) Aug 5, 2021 1:07 PM
       Rent Increase (by Dee [AZ]) Aug 5, 2021 1:08 PM
       Rent Increase (by BRAD 20,000 [IN]) Aug 5, 2021 4:11 PM
       Rent Increase (by Bob J [CA]) Aug 5, 2021 4:31 PM
       Rent Increase (by Steve smith [OR]) Aug 8, 2021 11:06 AM
       Rent Increase (by Michael [AZ]) Aug 8, 2021 11:14 AM
       Rent Increase (by Michael [AZ]) Aug 8, 2021 11:14 AM
       Rent Increase (by Michael [AZ]) Aug 8, 2021 11:14 AM

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Rent Increase (by Lew [NC]) Posted on: Jul 28, 2021 2:51 PM
Message:

I have a couple of nice duplexes in the Raleigh, NC area which is booming. I have a resident that has been in one unit for a dozen years and I never raised the rent for many reasons, the main ones being retention and to leave sleeping dogs alone (prevent turnover). The units all get increases when they go vacant but this one is an exception. But now that it is over a decade I have to raise it due to recent tax and insurance increases. Anyway I was wondering what experiences people had when jumping the rent and what a logical amount would be (after 10 years+) to prevent a move even though everything else around is high. I rent the units around it for $1200 per month but this one has been $750 since 2009. Thank you. --24.123.xxx.xxx




Rent Increase (by bet [MA]) Posted on: Jul 28, 2021 3:14 PM
Message:

This is a perfect argument for the very bad practice of not raising the rent every year. You have put your tenant IN A REALLY BAD spot. How do you expect them to come up with almost double the rent? We have learned over the years that yearly rent increases is the way to go. If the tenant can not afford the increase, they leave. Every tenant that we have ever keep their rent low and then raise, hated us. It never pays. If I were you, just tell them you need to bring the rent up to market rent and $1200 it is and they can stay or go. We just did that, they hate us and are vacating. We had to raise their rent or sell the house because we were losing money. --73.227.xxx.xxx




Rent Increase (by Rosie [VA]) Posted on: Jul 28, 2021 3:33 PM
Message:

Yikes! $750 vs. $1,200 Market! How much is this tenant worth? Obviously, you're potentially losing $450 a month -- is that resident worth that much? Like bet (MA) pointed out, that's why we usually raise our rents a little bit most years. With a long-term resident you'll still (probably?) be under market after 12 years, but not nearly as much. But that's water under the bridge now. Check around and see what they'll have to pay if they start looking around to move. I'd probably raise it at least $100 a month -- and that's IF you really don't want them to move and absolutely do not want to get a turnover. However, more than likely, I'd go to them (with LOTS of notice prior to the renewal) and explain the situation (ex: property taxes, insurance, other expenses have increased a lot in 12 years and you've been absorbing it. But you just can't afford to do that anymore. (Try to help them understand how you've subsidized the property for a long time). Raise it at least $200+ a month (should be more). They are probably going to be upset one way or the other -- just resign yourself to that. Even though you've done them a favor for 12 years, they're not going to see it that way. (Good deeds don't go unpunished). But it's probably time to let them leave, fix the house up, and rent for the higher money. That's a lot of dollars to lose over the years. No good answer. Good luck. --108.4.xxx.x




Rent Increase (by Sisco [MO]) Posted on: Jul 28, 2021 3:36 PM
Message:

Raise rents to top of market, continue to raise rents to top of market at every opportunity. --149.76.xxx.xxx




Rent Increase (by 6x6 [TN]) Posted on: Jul 28, 2021 3:45 PM
Message:

Are you keeping the house in tip top shape?

This will also come into play when raising the rent.

--73.120.xx.xxx




Rent Increase (by Lynn [MA]) Posted on: Jul 28, 2021 4:10 PM
Message:

I was like that in the past. So in order to catch up I would raise the rent $100 per month per year while other tenants would go up by $25 to $50 per month. If they are good and you want to keep them, they'll get up to market in a few years. --71.184.xxx.xx




Rent Increase (by MC [PA]) Posted on: Jul 28, 2021 4:20 PM
Message:

We tend to keep good tenants where they are for a few years. 10 is a really long time but I get it. Consistent, low maintenance goes a long way. I would give the tenant 60 days notice and raise it $50 to $75. --73.230.xxx.xx




Rent Increase (by BRAD 20,000 [IN]) Posted on: Jul 28, 2021 4:22 PM
Message:

Lew,

Straight truth, not trying to beat you up. The truth will hit hard.

Yes, this is a perfect example of why LLs MUST raise the rents, at least a little, EVERY year.

Right now you are supporting the res by $5400 per year. You are running a charity out of fear.

If someone OWED you that money you would be having a fit.

I did a quick estimate and determined you have LOST $24,566 since 2009.

NO RES is worth that much.

Don't operate out of fear. It takes courage to manage your business for a profit.

Me? Raise the rent to current market, without apologies, right now. If they cannot pay that shows they are not the right res for your rental.

Just keep remembering...you gave away $24,000...

At the very least this is a $5400 decision.

BRAD

--73.102.xxx.xxx




Rent Increase (by WMH [NC]) Posted on: Jul 28, 2021 4:40 PM
Message:

For the future, this is built into my lease now:

Either party may terminate the tenancy at the expiration of the Initial Term by giving written notice at least Sixty (60) days prior to the expiration date of the then-current term. If written notice is not given of intent to cancel, upon expiration of the term, if Renter remains in possession of all or any part of the Premises but without a new Lease being executed, Renter shall become a lessee from month-to-month subject to all of the applicable covenants, terms and conditions hereof, including notice requirements for such as prescribed by North Carolina law; and the monthly rental payments shall increase by 10%. Rent shall increase by only $25 per month if a new lease is offered and signed prior to the end of the lease term.

Tenants call ME to sign a new lease instead of me chasing them, and gladly pay the $25 increase. --50.82.xxx.xxx




Rent Increase (by Pmh [TX]) Posted on: Jul 28, 2021 5:26 PM
Message:

give notice 60 days is fair that rents will go up 150 a month. your costs are irrelevant to tenant but explain he will still be paying way under mkt rates. he will not move once he starts looking around. then on one year anniversary from this rent increase raise it another 150...mkt rates would have increased also. --107.77.xxx.xxx




Rent Increase (by Vee [OH]) Posted on: Jul 28, 2021 5:28 PM
Message:

Another vote for raising to market rent, why? you have gifted away about 5 years of college tuition based on what? --23.125.xxx.xx




Rent Increase (by Robert,OntarioCanada [ON]) Posted on: Jul 28, 2021 7:41 PM
Message:

Over time building components require replacement where a heating system, roof, structural, windows, plumbing requires major work where the capital is needed. Now there is climate change where insulation levels will have to be eventually upgraded. What is going to happen is low efficiency equipment is going to be phased out where replacing a heating system, hot water tank, AC is going to much more expensive. --99.236.xxx.xxx




Rent Increase (by dave [CA]) Posted on: Jul 28, 2021 9:25 PM
Message:

the four 'R's' ----raise rents reasonably regularly.

3 to 7 percent per year 10 percent if things get crazy. --172.250.xx.xxx




Rent Increase (by dave [CA]) Posted on: Jul 28, 2021 9:25 PM
Message:

the four 'R's' ----raise rents reasonably regularly.

3 to 7 percent per year 10 percent if things get crazy. --172.250.xx.xxx




Rent Increase (by Dee Ann [WI]) Posted on: Jul 28, 2021 10:35 PM
Message:

A LL friend of mine sends the Zillow estimated rents amount to his tenants vs what his rent is with the rent increase. They are happy to pay his rent increase, as Zillow's estimates are always higher. --176.113.xx.xxx




Rent Increase (by Sandra [AZ]) Posted on: Jul 29, 2021 5:26 AM
Message:

As someone who is currently going through this same scenario, I recommend raising the rent by several hundred dollars.

Backstory: In the past few months, I assumed management of several properties (mostly SFH) that have not had rental increases in several few decades. Talk about thousands of dollars down the drain! Makes my stomach turn when I think about how much money was left on the table.

This is how I handled the situation. Sent out rent increase notifications to everyone 90 days out (state law requires 30 days, but wanted to give the tenants time to prepare). Also, spoke to each individual and explained why the significant increases were necessary and non-negotiable. Then, I encouraged everyone to do their own market research to help them make the best educated decision.

Basically, draft a short, concise letter that is straight to the point and has guidance on how to move forward with either decision. Then, make sure you execute your action plan.

The tenants will not be surprised to know their rents will increase, but they might push back with the increased amount. Remind them you are following the law, the market conditions support the new rate and if they disagree with your decision, encourage them to view alternative housing options as afforded within the free market.

Secure your investment! Get paid what you deserve. Who works for free?

--98.145.xxx.xx




Rent Increase (by Still Learning [NH]) Posted on: Jul 29, 2021 7:51 AM
Message:

Just did the same thing. Due to a variety of reasons there hadn’t been an increase on that unit in 10 years. $325 below the lowest in the building $425 below highest in building probably $525 below market. Decided to raise it $325. Gave just short of 90 days notice out of curtesy. I made the phone call, had a discussion and followed up with a few options where it would raise all at once or on an incremental over several months. The tenant said they had been expecting the call for a long time but in the end, gave their notice. Ultimately even though it’s a slightly more difficult unit to rent due to occasional water in the basement and winter plowing on snowy years can make parking 2 cars difficult, I need to address a few issues which will be easier vacant. Rent will go up to market and yes, I learned my lesson. --75.67.xxx.xxx




Rent Increase (by JB [OR]) Posted on: Jul 29, 2021 12:12 PM
Message:

Lew, I have another reason not to let rents get too far below market rates. In many areas, including here in my state, our brilliant leaders have decided they wanted to quickly implement rent control. Then you could be completely screwed.

Always try to consider your decisions from several "what if" scenarios. It could really save your bacon...and your business. --73.25.xx.xxx




Rent Increase (by Oregon Woodsmoke [ID]) Posted on: Jul 29, 2021 2:14 PM
Message:

Don't raise it all at once, but start doing annual raises. He is $450 under market. Just where do you think he is going to move to where he is going to still get $700 a month rent?

Give him $100 a month raise and he can't move because there is nowhere to go except for homeless.

Tell him the rent increase is due to increased property taxes and increased insurance.

If he does move out, you can go to full market rent, so losing him is not all that tragic. --76.178.xxx.xxx




Rent Increase (by Ray-N-Pa [PA]) Posted on: Jul 29, 2021 6:44 PM
Message:

Please donate the $20,000 that you have given away to Jeffery's charity - the keep the LL Q & A forum going non-profit.

You do realize that if you also pay my mortgage for me, I will not move - and since you are being so giving, I can provide you with my PO Box too --24.101.xxx.xxx




Rent Increase (by Jim in O C [CA]) Posted on: Jul 29, 2021 7:04 PM
Message:

When you don’t increase the rent periodically, tenants go ballistic if you increase it even a really reasonable amount. I raised mine $200 which was still $300 below market and the tenant complained. Do it anyway. --99.23.xxx.x




Rent Increase (by plenty [MO]) Posted on: Jul 29, 2021 7:22 PM
Message:

I would suggest $200 with out interruption. Thats $750 to $950. In two years go up another $100 --172.56.xx.xxx




Rent Increase (by Tim [CO]) Posted on: Jul 31, 2021 12:22 PM
Message:

I’d Go up to 1000, and let them know the market rate is 1200, so they are still under average. If they leave, move forward at 1200+ with new residents. I have long term tenants in a 4 unit. I raise them every year, 35-100 min, and always keep at or above market rate. Years on end littte turn over. In fact I leveraged the few vacancies to let current residents see pricing and what the “new turns” get and why their new neighbors will be paying more then they do. I offer them the unit too. I’ve been known to add for my long terms a ceiling fan a light or just clean a carpet, in exchange they agree to step up $35 a month while seeing the “turn unit” @100 more. I love the value adds that keep them staying, increase my cash flow and creates a win win! Who doesn’t want fries and a milk shake with their meal? --71.211.xxx.xx




Rent Increase (by Bobbie J [CA]) Posted on: Aug 3, 2021 12:54 PM
Message:

Reading above shows the value of money and what is lost "maybe?" Another perspective as follows: Turnover costs me money. Although tenants usually get all or most of deposit, I have changed to LED lights, painted and done other "extras or upgrades." Place is vacant while looking for new residents.

Recently I had almost new dishwasher I sold to someone else's tenant. Tenants told me woman's husband died recently and their rental had not had increase for a long time. Tenant also paid $150 to install dishwasher and have old one hauled away. GE Dishwasher in new home I purchased, only 2 months old, but I wanted a better one - So this was a Win-Win. I had a bunch of cash from garage sale including dishwasher. Used it to give tips to car wash people who came in Memorial day, Family Promise (for homeless in our area) and some other charities.

I have rental I have been raising the rent last few years - about $100, which is 5%. Still under market. Woman lost her job during pandemic as Nordstrom's was closed then. 10% is a lot to raise. I think you must give longer notice if 10% or more in California. Also, these tenants have called me 1 time in about 8 years. At no time did I lose vacancy rent.

Also in above I believe people were figuring whole amount of difference from current to $1200 month. Actually that amount only correct for past year. Regular rent increases would have been gradual. While we are not a charity, I believe we still treat others as we want to be treated.20% raise of $750 is $150, which has been suggested as fair.

And now you know "the rest of the story!" --98.255.xxx.xx




Rent Increase (by Jonathon [CA]) Posted on: Aug 3, 2021 1:48 PM
Message:

California is big welfare state to protect tenant

especially in San Francisco and Los Angeles too many homeless.

If landlords raise rent and tenant can create lots troubles and make landlords to suffer even more financial loss....

Professional tenants in California know how to take advantage of Landlords and live for free for years

California has extended Moratorium to September 30

possible more extensions on and on never ending per CDC...

Tenants can live for free and go to vacations too

Landlords has to pay California property tax, insurance and maintenances and HOA and utilities ....Tenants refuse to move and live for free for ever....it is impossible to evict tenants in California...Watch movie Pacific Hight --107.214.xxx.xx




Rent Increase (by mike [CA]) Posted on: Aug 3, 2021 2:21 PM
Message:

in business i always return to the setting of expectations. they expect you to fix water heaters and roofs and toilets, you expect them to care for the place and pay rent on time. they do not get to set the rent, they only get to decided if they want that rate and i assure you they do not expect to set the rent. no tenant does (except in bolshevic towns like san francisco or new york or santa monica).

raise the rent the maximum allowable amount promptly. as JB(OR) states there are more reasons than feared turnover to consider. we saw this year a series of governors cancel rents with the stroke of a pen. when rent controls hit they peg the baseline to the then current rent. raise the rent.

if you like them you can let them know the rent will step up over two years to market rates and let them pick their own rent raise nor split. $250 now and another $250 in 12 months. that gives them plenty of time to move (or not) and starts to set their expectations.

your expenses go up every year, the place deteriorates every year. stuff breaks or nears it break point. raise the rent.

you are subsidizing the tenant, who is no one to you. if it was your sister or a favored niece...SURE, cut them a break but an unrelated party? no way, and certainly not for so many years.

given the leniency you've shown, when was the last time you inspected and delivered a memo to them about that visit? the common theme i hear of in cases like this is that "the tenants are great, they never call me and fix the little stuff themselves". only 1 tenant in ten can tighten a doorknob...1 in 100 can properly swap a garbage disposal.

i'll disagree with Jonathan...calif is not that bad at all. the movie pacific heights is a san francisco story and a hollywood pretend. i've evicted a half a dozen folks over the last 25 years and NONE took longer than 37 days. it did get worse in the last year or so but that simply reinforces the many advisories you got here to raise rents regularly. a landlord that was collecting 100% of the rent prior to the moratoriums feels much less like a chump than a guy that was taking in 66% or market and now is getting 0%.

--76.173.xxx.xxx




Rent Increase (by Harry [MA]) Posted on: Aug 3, 2021 3:05 PM
Message:

I did this too - mistake! Go up incrementally at least in the beginning. If the tenant [who surely knows the deal he is getting] should not balk. Turnover invites market rates, so if the tenant balks and leaves, well, then you will get the higher rent sooner! --71.184.xxx.xxx




Rent Increase (by Jonathon [CA]) Posted on: Aug 3, 2021 3:39 PM
Message:

If you raise rent regardless how much the rent increase they will be angry and refuse to pay at all and also they refuse to move then what do you do ? --107.214.xxx.xx




Rent Increase (by Jacqueline [NY]) Posted on: Aug 3, 2021 3:45 PM
Message:

A dear friend of mine was in a similar situation. When she told me what she was charging for rent, I told her that those tenants couldn't live in their parent's basement for less than that!

You definitely do need to increase the rent, but I'd go modestly. Do you have a lease agreement? Perhaps you can re-do the lease agreement with something that indicates the rent will continue to increase by a certain percentage every year. After having had so many years without an increase, it will be an unpleasant shock to them, no matter what. As another person said, no good deed goes unpunished. Try not to take it personally if they take the news less than cheerfully. It's just the nature of the beast. --66.63.xx.x




Rent Increase (by mike [CA]) Posted on: Aug 3, 2021 3:45 PM
Message:

fun story. years ago i overheard my friends dad, the single most successful real estate investor i know, talking with a prospective tenant on the phone. the prospective tenant was asking that the deposit be split into two payments. my friends dad said "if you don't have the $1,200 deposit now then you cannot afford to live in my apartment. thanks for calling" and then he hung up. i learned a lot from him. the financial practices of the tenants we provide housing to are what they are. we cannot let their practices drive our finances. we do this to earn money and build security for ourselves and ours. if you want to provide below market housing go find a women's shelter or a veterans organization or such and do it with their clients. everyone else pays retail. --76.173.xxx.xxx




Rent Increase (by Jonathon [CA]) Posted on: Aug 3, 2021 4:41 PM
Message:

Question to Mike from Ca

i've evicted a half a dozen folks over the last 25 years and NONE took longer than 37 days

Did you handle the eviction process yourself or go thru Eviction Attorney ?

37 days is very lucky for you

I was told by Eviction legal professionals it can take minimum 75 days to 2 years or longer...per California ONLY STATE in the whole country allows Demure to be filed unlimited times in eviction court especially current Moratorium extension in California... --107.214.xxx.xx




Rent Increase (by Joe [CA]) Posted on: Aug 3, 2021 5:03 PM
Message:

I don't like tenants to stay much past 6 - 8 years; I raise my rents annually. During the turnover, I can re-fresh the place and go up to the latest market rate. --108.201.xx.xx




Rent Increase (by jonathon [CA]) Posted on: Aug 3, 2021 5:06 PM
Message:

If tenant refuses to move

What do you do ? --107.214.xxx.xx




Rent Increase (by Wayne [CA]) Posted on: Aug 3, 2021 5:52 PM
Message:

I learned my lesson years ago when I had a 10-yer tenant with only one increase in rent during that period. The rent on his unit increased dramatically after he moved.

All that has changed, however. I now raise all rents EVERY year. My lowest increase was mere $22; my greatest $350, followed the next year at another unit by $350 also. The first high raise came at turnover. The second: he moved into an over-55 unit for $150 less than he paid me all the while saying, "you're still under market by at least $150.

He was an outstanding tenant, always paid his rent two weeks ahead of time (something I did not like but never complained about. I had his place re-rented within seven days at $2,135. Sixty-four applications through Zillow verified the cheaper rent. Many apps with FICO scores in the high 700s and low 800s were received.

I work on the "No tenant is better than a bad tenant" business model and I do take significant damage deposits. I always rent to those who may have something to lose if they don't perform properly. They always perform.

The program works. In 54 years I have never missed a rent payment nor have I ever performed an eviction or even asked someone to move. I fully expected this last tenant to move because of the rent increase. And yes, it took me at least 25 years to learn these simple but very important lessons.

I also learned to be polite but firm ... and fair. --172.116.xxx.xx




Rent Increase (by Honey [LA]) Posted on: Aug 3, 2021 11:55 PM
Message:

Years ago, Mr. Landlord advised raising our rents by $10 a month every year, remarking that nobody was going to move over ten bucks. And that's what I've been doing for the last 15 years. Except when someone moves out! Then I jump the amount, whatever the market dictated. And, do they complain. Not about the rent payment, but about the water heater or the air condition or the fridge went on the blink and so forth and so on. That's when I know I'm charging them enough. They want what they are paying for. A well kept living accommodation. I "renew the lease" on their anniversary and they expect a little raise. And another thing, our tax accessor is always saying our city rents are too high, while he raises the property taxes, never relating these two issues. And life goes on... --68.227.xxx.xxx




Rent Increase (by mike [CA]) Posted on: Aug 4, 2021 2:25 PM
Message:

jonathan [ca], i always use an attorney and the key for me was to actively manage the calendar. carefully choose the process server, be sure they file on at the first possible time. be aware of courthouse hours and holidays. the typical so/cal eviction atty is a very busy place and they typically earn low fees for these files so you have to be on top of the file. twice i contrived a ruse to assure all the roach tenants were on site for the server to hit them all on the same day we filed the UD...a real time saver. (for those outside of calif a UD is unlawful detainer...an eviction)

in the new era there are even better reasons to use an atty...the new laws are sometimes city and county dependent as well as state. i did have one go long but that was when the sheriff in san bernardino refused to enforce the writ for possession over the the entire month of december. except in san fran and other nutcase lefty jurisdictions the courts are respectful of the attorneys that practice in that corner of the legal field. EVERY landlord should take occasional field trips to the local courthouse to see the cases get tried. you should also sit in on a few cases about deposit accounting and refunds. very good education for a landlord...and free. it's always better to learn from someone else's mistakes than your own! i used to stop in every 6 months if i was passing by. the 'rona put an end to that.

as a reality, in california, ANY tenant paying below market rent KNOWS they are getting a deal. they NEVER fret over a rent raise because they know they ain't movin' because the rental market is tight as a ducks ace. --76.173.xxx.xxx




Rent Increase (by Jonathan [CA]) Posted on: Aug 4, 2021 3:36 PM
Message:

Thank you Mike (Ca)

One of my tenants pay monthly rent $2400 for 5 years

I never raised any rent and current market rent is $3200

How much I should raise monthly rent ? She will be very angry at me if I sent her letter to raise monthly rent

I am afraid if she lost her temper and caused more damages --107.214.xxx.xx




Rent Increase (by Guilty Too [AZ]) Posted on: Aug 5, 2021 12:51 PM
Message:

This really hits home I was guilty of the very same mistake. Don't like raising rents and keeps rent coming in every month like clock work and it costs money to turn a place over; lost rent, paint maybe carpet etc to get the higher rent too. I did raise rent a couple of times during 11 years of their occupancy but moderately still far from the going rates. Although rents and jumped quite a bit in the last few years I'm now hundreds behind. I sold one property and the tenant passed in the other so I retivated it and going to make it a vacation rental for twice the rent as I got before. Easy to increase rent now because their just temporary stays. --68.2.xxx.xx




Rent Increase (by Lori [CT]) Posted on: Aug 5, 2021 1:07 PM
Message:

When I had that issue, I sat with the tenant and explained the situation. Then asked how much she could afford to pay. It was higher than I thought she would say.

After that initial increase, I raised rents every two years and noted the amount in the current leases “option to renew” section. When they complained, I alway had the comeback “yes, you have a rent raise this year, but won’t have one the next. --97.64.xx.xxx




Rent Increase (by Dee [AZ]) Posted on: Aug 5, 2021 1:08 PM
Message:

I agree with Joe (CA), when my tenant passed after 11 years in my rental and getting cheap rent, I was able to thoroughly go through the place to find the toilet was not secured to the floor, garbage disposal not working, glass doors to showers not opening and closing. Actually that's not so bad but a lot of general stuff along with carpet and painting to do too. I don't recommend letting someone renting longer than 3-5 yrs or you can find you have some serious problems not being reported by the tenant to keep their rent low. It's a double edge sword for the landlord to to long to one tenant not to mention loss of rent increases. If you're going to be in the rental business than it's important to do it right and make the going rents because after expenses such as repairs to all their appliances, mortgage, HOA fees etc, you really don't make that much. --68.2.xxx.xx




Rent Increase (by BRAD 20,000 [IN]) Posted on: Aug 5, 2021 4:11 PM
Message:

I am amazed at the number of responses to gently increase or increase incrementally over the next few years. Isn't that kinda the same problem that put Lew here in the first place - lack of keeping up with the market?

If your rental is worth $XXXX, then charge $XXXX.

Doing a little each year just puts off the inevitable - the res leaving

BUT

the LL did not get the chance to recoup what he should be bringing in.

If you hired a property manager who did not bring in all the profit your investment should be making, you would fire them.

Rental rates are high right now - make hay while the sun shines

BECAUSE

sometimes it rains and you need that profit from the good years.

Material costs have skyrocketed, need plywood for the roof? Roofs WILL be replaced. Water heaters cost double from just a few years ago, property taxes have gone way up, my local school district just added a new tax, insurance goes up every year, we're hearing dribs and drabs of what Biden's plan MIGHT do - I'm sure it will cost us...

BRAD --73.102.xxx.xxx




Rent Increase (by Bob J [CA]) Posted on: Aug 5, 2021 4:31 PM
Message:

I agree that it makes no financial sense to keep rents substantially below market. You're just giving money away. However, a good tenant who pays rent each month on time, keeps the place in good condition, and doesn't bother you too much is definitely worth keeping. There are significant costs and risks whenever you search for new tenants even if you screen carefully. Consider the past year when with eviction moratoriums, a bad tenant could have stayed in your property the whole time without paying any rent at all. So, I think it makes sense to keep the rent for good tenants around 85-90% of the market rate rather than push it up to the maximum the market will bear. --73.189.xxx.x




Rent Increase (by Steve smith [OR]) Posted on: Aug 8, 2021 11:06 AM
Message:

You in the wrong frame of mind --172.58.xx.xxx




Rent Increase (by Michael [AZ]) Posted on: Aug 8, 2021 11:14 AM
Message:

As always there's a lot of interesting and thought-provoking comments. I try to raise rents at the end of every Lease. I see a lot of arbitrary numbers of $20 & $50 and $300 but for me, the rent always starts at market value.I always give my tenants three options when renewing their lease, the first being sign a month to month lease at market rent. The second is to sign a six month lease at a little bit under that, and third is to sign a one year lease with a market discount of 10-15%. I don't mind getting slightly under market rent for good tenants, that is a fantastic trade. I live in Phoenix where the market rents have gone up exponentially. I just sent out notices to 3 tenants to go from 825 a month to $995 a month. One has already accepted the new one year lease and I believe the other two will do the same in the next couple weeks. Thank you everybody for the great comments and ideas and I hope this helps some of you with the process. --68.2.xxx.xx




Rent Increase (by Michael [AZ]) Posted on: Aug 8, 2021 11:14 AM
Message:

As always there's a lot of interesting and thought-provoking comments. I try to raise rents at the end of every Lease. I see a lot of arbitrary numbers of $20 & $50 and $300 but for me, the rent always starts at market value.I always give my tenants three options when renewing their lease, the first being sign a month to month lease at market rent. The second is to sign a six month lease at a little bit under that, and third is to sign a one year lease with a market discount of 10-15%. I don't mind getting slightly under market rent for good tenants, that is a fantastic trade. I live in Phoenix where the market rents have gone up exponentially. I just sent out notices to 3 tenants to go from 825 a month to $995 a month. One has already accepted the new one year lease and I believe the other two will do the same in the next couple weeks. Thank you everybody for the great comments and ideas and I hope this helps some of you with the process. --68.2.xxx.xx




Rent Increase (by Michael [AZ]) Posted on: Aug 8, 2021 11:14 AM
Message:

As always there's a lot of interesting and thought-provoking comments. I try to raise rents at the end of every Lease. I see a lot of arbitrary numbers of $20 & $50 and $300 but for me, the rent always starts at market value.I always give my tenants three options when renewing their lease, the first being sign a month to month lease at market rent. The second is to sign a six month lease at a little bit under that, and third is to sign a one year lease with a market discount of 10-15%. I don't mind getting slightly under market rent for good tenants, that is a fantastic trade. I live in Phoenix where the market rents have gone up exponentially. I just sent out notices to 3 tenants to go from 825 a month to $995 a month. One has already accepted the new one year lease and I believe the other two will do the same in the next couple weeks. Thank you everybody for the great comments and ideas and I hope this helps some of you with the process. --68.2.xxx.xx



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