rent increase - turnover
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rent increase - turnover (by Hammer [TN]) Jan 21, 2022 10:11 AM
       rent increase - turnover (by Frank [NJ]) Jan 21, 2022 10:53 AM
       rent increase - turnover (by jonny [NY]) Jan 21, 2022 10:54 AM
       rent increase - turnover (by LisaFL [FL]) Jan 21, 2022 11:03 AM
       rent increase - turnover (by Jim in O C [CA]) Jan 21, 2022 11:06 AM
       rent increase - turnover (by Busy [WI]) Jan 21, 2022 11:20 AM
       rent increase - turnover (by Busy needsnewglasses [WI]) Jan 21, 2022 11:22 AM
       rent increase - turnover (by Still Learning [NH]) Jan 21, 2022 11:24 AM
       rent increase - turnover (by LisaFL [FL]) Jan 21, 2022 12:34 PM
       rent increase - turnover (by Hammer [TN]) Jan 21, 2022 12:51 PM
       rent increase - turnover (by Alan [CA]) Jan 21, 2022 1:05 PM
       rent increase - turnover (by Sisco [MO]) Jan 21, 2022 1:36 PM
       rent increase - turnover (by Robert J [CA]) Jan 21, 2022 1:40 PM
       rent increase - turnover (by myob [GA]) Jan 21, 2022 2:17 PM
       rent increase - turnover (by Dee Ann [WI]) Jan 21, 2022 2:51 PM
       rent increase - turnover (by Dee Ann [WI]) Jan 21, 2022 2:55 PM
       rent increase - turnover (by jonny [NY]) Jan 21, 2022 3:31 PM
       rent increase - turnover (by Busy [WI]) Jan 21, 2022 6:44 PM
       rent increase - turnover (by T [IN]) Jan 21, 2022 6:57 PM
       rent increase - turnover (by Hammer [TN]) Jan 22, 2022 8:47 AM
       rent increase - turnover (by Dee Ann [WI]) Jan 22, 2022 10:38 AM
       rent increase - turnover (by Oregon Woodsmoke [ID]) Jan 22, 2022 11:59 AM
       rent increase - turnover (by Oregon Woodsmoke [ID]) Jan 22, 2022 12:02 PM
       rent increase - turnover (by Phil [OR]) Jan 25, 2022 6:50 AM


rent increase - turnover (by Hammer [TN]) Posted on: Jan 21, 2022 10:11 AM
Message:

Great tenants, retired couple who keep the house in tip top shape and pay early every month.

Coming up on month 14 of a 24 month lease renewal (had modest increase included)

In the past year, rents have jumped quite a lot in my area, especially for quality 3/2 homes making these renters about $300 below market.

At renewal time there will need to be a rent increase.... how much is the ??

How do I calculate this....?

Raise rents to full market, have a turn over and have to pick through a poor tenant pool. VS.

Raise rents but still be under market, but keep the excellent tenants and avoid the loss of a turn over.

Put another way, how much below market are you willing to be in order to keep perfect tenants and avoid the trouble and loss of income from a turn over

--152.97.xxx.xxx




rent increase - turnover (by Frank [NJ]) Posted on: Jan 21, 2022 10:53 AM
Message:

We have had this same discussion with sn slmost sam house size and demographic.

Sterling T's, low maintenance.

Rents are up locally...waaay up.

So, do you expect to do reno/updates that can = some extra downtime? How much $ is a 2 month vacancy?

Maybe this a chance to ask the T's what rent rsise amount they think is fair.

I have seen that concept prposed here before. Maybe it can work for you --174.206.xxx.xx




rent increase - turnover (by jonny [NY]) Posted on: Jan 21, 2022 10:54 AM
Message:

I would increase but not necessarily "up to market" (depending on what that entails... I mean, if 2 or 3% increase brings them up then fine ... if not, then I would just do that - again, I don't know what your current rent is or what you would normally raise during it).

The other thought is that it's 10 months away ... your opinion of everything could very well change by then. Keep an eye on your expenses/costs and adjust accordingly. --69.201.xx.xxx




rent increase - turnover (by LisaFL [FL]) Posted on: Jan 21, 2022 11:03 AM
Message:

Well it used to be that it took two months of rent to cover just my taxes and insurance. Years later it now takes three months of rent to cover my recurring costs.

I have some that range between the two and I found that I have others that are now taking around 3.5 months.

I have one coming up for renewal that is now $600-$800 below market because our market is insane. These are the most perfect dream tenants you could ever wish for. They are getting a $150 increase to put them back in the range of three months rent to cover known expenses range. So now they will be $450-$650 below market.

So their new rent will be $1350 and market rent is $1800-$2000. --24.96.xx.xxx




rent increase - turnover (by Jim in O C [CA]) Posted on: Jan 21, 2022 11:06 AM
Message:

I keep my rent attractive and my great tenants stay for years and are never late. During Civid 19 I didn't lose a penny. A raise to cover increases and a slight market increase works for me. --89.45.xx.xxx




rent increase - turnover (by Busy [WI]) Posted on: Jan 21, 2022 11:20 AM
Message:

My thought is the rents are way up right now because good tenants have been buying houses. So, the tenants that are left are the dregs. Blech! I really despise digging through hordes of violent, entitled, argumentative persons looking for someone with cooperation as one of their main traits. I want the DAYS on Market as much as i watch rent rates. Those higher rates I am seeing are carrying a lot of Days on Market. For my area, that is very important. Vacant houses are very subject to break-ins. Furnace thieves are rampant. So, I want to fill the houses more quickly, rather than leave them sit vacant for long. Especially as I cannot be there each day; most thefts occur in daytime, that I am aware of.

I gave my tenants a rent decrease this year. ( sort of. It has conditions.) This sounds like an excellent time to use Jeffrey's rent increase letter ( how much you wanna pay.?) Sorry, Jeffrey, I know thats not what its called, that just the nickname i have for it in my head. I think it is a brilliant idea.

Very small time landlord, my opinion may be worth only what you paid for it. --70.92.xxx.xxx




rent increase - turnover (by Busy needsnewglasses [WI]) Posted on: Jan 21, 2022 11:22 AM
Message:

I watch days on market as much as i watch rent prices. --70.92.xxx.xxx




rent increase - turnover (by Still Learning [NH]) Posted on: Jan 21, 2022 11:24 AM
Message:

I just went through that, gave a modest $200 increase and they moved. I canít do renovations myself and that became a 4 month debacle at higher costs than normal. I now get an extra $500 a month and donít regret it but if you have to hire out vs do yourself will you be able to find qualified people to do it in a reasonable time frame? If not, would you rather wait another year and see if things have settled. --75.67.xxx.xxx




rent increase - turnover (by LisaFL [FL]) Posted on: Jan 21, 2022 12:34 PM
Message:

Still LearningÖ.those are all things to consider. Fortunately we can do most anything ourselves or have good relationships with contractors who will find a way to fit me in.

Iíd say it literally depend on your market. I am in the hottest market in the country it seems. My tenants would be doing me a favor if they moved. But my goals are different.

I had one in early 2020 needing some updating. Rent was $1150. Took two months to do the improvements. I could have sold it as is for $200,000 at the time. After spending about 10k on renovating it would have sold for $250,000.

Just raised the rent from $1640 to $1750. But market rent is now $2500. Selling it now it would go for $400,000.

Thus I wish the tenants would move. There is nowhere for them to move to though. --24.96.xx.xxx




rent increase - turnover (by Hammer [TN]) Posted on: Jan 21, 2022 12:51 PM
Message:

Rent is currently $875. At renewal market rent was about $925 so only about 5.5% under market.

Within 6 months market rent was $1000/mo one year after renewal market rent is around $1200/mo. So Im sitting on about a 27% deficit on market rent. Loosing out on $3600/year minus turnover costs. (estimated turn over is $1200 to paint etc. and one month lost rent= $2400).

So if we turn over we will net $1200 the first year in additional rent.

Rentals are in high demand, unfortunately our employment demographic hasn't improved so its mostly undesirables and un-rentable applicants. Finding good renters in our area is difficult so there is definately a $$ value to keeping the good renters. The hard part is determining what the $$ value is.

--152.97.xxx.xxx




rent increase - turnover (by Alan [CA]) Posted on: Jan 21, 2022 1:05 PM
Message:

We face the same situation here as LisaFL. Situation is exacerbated because we currently have great tenants. --71.198.xxx.xxx




rent increase - turnover (by Sisco [MO]) Posted on: Jan 21, 2022 1:36 PM
Message:

Donít conflate under market rent with good tenants; the two issues are unrelated.

The price of Everything is rising fast with no end in sight. By the time this lease expires in 10 months, you will likely need to raise rent by $700 per month over your current lease. Donít be timid. --149.76.xxx.xxx




rent increase - turnover (by Robert J [CA]) Posted on: Jan 21, 2022 1:40 PM
Message:

There are many ways to look at this. Some say you have to teach your tenants to expect a rent increase every year. I am NOT subscribing to this policy for my "A" ad "B" property's.

I let my tenants know that when they move in, if they treat me and my property with "respect" and pay their rent on time (before the 1st), then based on this I may not raise their rent on their 1 year anniversary. They appreciate this so much. And when you have LOTS of tenants that work with you instead of making everything a fight, anything to make land lording easer is a blessing. --47.155.xx.xxx




rent increase - turnover (by myob [GA]) Posted on: Jan 21, 2022 2:17 PM
Message:

you are in one of the hottest markets there in TN.

We are in GA also super hot market. If you can't get rent closer to market than 2 or 3% throw in the towel.

Our rents are going up 150 to 200. WHY because property's on the market now are going for 1500 MINIMUM for a 3/2. We increased to 1250 to 1350. Tenants we want "out" went up 300. News flash-- not one moved not one questioned. I'm NOT GETTING TURN OVERS. It's going to make my turnover sheet impossible next year.

We did have a form letter outlining what has caused the increase's. AND WE AS LL'S KNOW WHY. HINT SO DO THE TENANTS. --99.103.xxx.xxx




rent increase - turnover (by Dee Ann [WI]) Posted on: Jan 21, 2022 2:51 PM
Message:

We are in a tax situation, due to an inheritance, that will throw us in a higher bracket or two if the rents are also raised significantly.

Like Robt J, my newbies get a pass on the first year increase if they take care of the place. Well before my newbies start looking, I've been thinking of sending an email stating NO RENT INCREASE THIS YEAR, ARE YOU IN?

Due to home purchases over the holidays I will have 2 expensive units unrented. With 12,000 hits, the received calls thus far have not qualified. One continues to follow up, but I've determined she is a PITA the way she talks about her last landlord and is now living with her sister.

I'm not in the market for more move outs. We are in the market to start selling next year perhaps.

On the other hand, I was able to showq and rent a room, sign the lease with all monies paid through end of February plus security in two days this week and she's already moved in. If things don't get better, I'll opt for travel nurses or room rentals in one property while we refresh another.

I vote for Jeffrey's idea of letting them name the increase, making sure they are aware of the market value and that you value them somehow. --75.11.xx.xx




rent increase - turnover (by Dee Ann [WI]) Posted on: Jan 21, 2022 2:55 PM
Message:

BUSY, would you mind sharing the conditions you attached to your rent (sorta) decrease?

--75.11.xx.xx




rent increase - turnover (by jonny [NY]) Posted on: Jan 21, 2022 3:31 PM
Message:

Yes, watch the days on market too and if you are uncomfortable with your property being vacant or it's costing you more then it's not worth it (but again, get the right tenant too).

This is about a rent increase though and if they still have 10 months I don't know why you are fretting about it right now. Yes, planning is great but 10 months a lot can change.

If they are keeping everything good, clean and paying on time, no issues or complaints then just watch the market, see what happens. In 5 or 6 months check it again and see if it's something you want to increase... right now you are stating (if I am getting this right) they are about $325 below market rent but that's because the market went CRAZY NUTS... I don't think it will continue to go up but rather it will settle.

If these are people (tenants) you want and you are getting the money, then raise them but not to market (in my opinion). I'm doing the same thing here but all of my tenants (with the execption of one) pay either on the first or before the end of the previous month. All but one will be getting increases (and the reason the one won't is because when they moved in, I jacked the rent up and they don't have laundry hook-up either so at renewal, this year I'm not going to increase their rent).

The one that pays late ALL OF THE TIME and is costing me money is getting jacked up about 11.5% because they are under market, I haven't increased their rent (my fault) in a long time - I actually am not losing much from when they started to rent BUT they are costing me on upkeep... so if they leave, they leave and if they want to stay then they need to pay it. I don't care because it will be Spring (like May timeframe) and I'll just go, reno and either sell or hike the rent up even more and see what happens. --69.201.xx.xxx




rent increase - turnover (by Busy [WI]) Posted on: Jan 21, 2022 6:44 PM
Message:

Dee Ann, sorry not on a public forum. I'm probably too searchable already. --70.92.xxx.xxx




rent increase - turnover (by T [IN]) Posted on: Jan 21, 2022 6:57 PM
Message:

DeeAnn- Funny, I have tried with three now of "name your rent".... two of their reply has been none. So I guess I name it and they can deal with it.... the other one, didn't even get close to my "still under market by 20%"

I sent out a newsletter this past week to my apt units. Basically said, "get ready for rent increases larger than normal" Had two text and ask for an approximate $$ amt. Rest did not.... I guess when I get my tax surprise, I'll give them their rent increases too. --76.77.xxx.xxx




rent increase - turnover (by Hammer [TN]) Posted on: Jan 22, 2022 8:47 AM
Message:

Ours is a strange market. Median income is $33k. Largest employer is government. When we moved here 8 years ago, we were buying foreclosures for $50k and market rent was $350. People thought we were crazy for asking $500 but we got it because we had nicer homes.

Next large town is 45 minutes away and it grew by 17% the last 3 years in a row. Thus driving a lot of lower income people out to smaller towns like ours to find lower cost of living. 2 years ago there was a huge wave of no job, no references, no verifiable income people trying to rent here. Literally hundreds of messages/calls per day on any rental listing. Many from out of the area who were desperate to find a place with no background checks.

Now we have a huge wave of blue state refugees, and people moving to our little country town from the expensive metro areas. They are paying cash, sometimes sight unseen. This & the covid reaction has increased house prices about 60% in the past 3 years. Once again property/rent prices are upside down.

A basic single family 3/2 will be about $125k for a dump and closer to $199k for a ready to move in home. Rents for the move in ready 3/2 are $1150-1250.

Thanks for all the excellent replies. Ill wait until closer to renewal time and send the "rents are going up, what can you pay? " letter. I suspect that once they shop the market they will either be fine paying the higher amount, or look to move away into a smaller/cheaper place. --152.97.xxx.xxx




rent increase - turnover (by Dee Ann [WI]) Posted on: Jan 22, 2022 10:38 AM
Message:

BUSY: Are we allowed to share an email on this site? I'd love to give you one or msg me on Facebook if you have one? --75.11.xx.xx




rent increase - turnover (by Oregon Woodsmoke [ID]) Posted on: Jan 22, 2022 11:59 AM
Message:

You have ten months to go before renewal. A lot can happen to rents in 10 months, so it is far too early to be planning your rent increases.

Rents here went up an astronomical amount, but now they seem to be settling downward a bit. Still much higher than they were before Covid, but they hit a peak and are inching slightly downward.

I follow my market closely, but renewals aren't until the end of April, so I don't have firm plans. I want to keep the tenants I have, but I am also leery about a National rent control becoming law, so I don't want to be too many hundreds of dollars below market if that happens. --76.178.xxx.xxx




rent increase - turnover (by Oregon Woodsmoke [ID]) Posted on: Jan 22, 2022 12:02 PM
Message:

Adding this: the government is claiming 7% inflation, but just about everything I buy has gone up about 30%. Every couple of months I get a notice that utilities have a rate increase.

it's not just a housing shortage, its that our money has lost a lot of value. Your tenants have lost a lot of purchasing power, but not all of their economic loss should be coming out of the landlord's pocket. --76.178.xxx.xxx




rent increase - turnover (by Phil [OR]) Posted on: Jan 25, 2022 6:50 AM
Message:

If you don't raise rents- you are going backwards. Even with the best tenant there can be (yourself) costs go up every year. My property taxes go up by a minimum of 3% every year. My insurance goes up by 5 to 10%. Costs for repairs...WAY up.

Turn-over costs also, so may be a reason to keep rent a little below market.

Take a look at the rental market you are in and the demand. It could well be you can put a new tenant at full FMR in days. Are you willing to leave $3,600 a year behind???

I raise rents every year now- send a copy of HUD Fair Market Rent for the area along with the indication that taxes, insurance etc go up. Never lost a tenant over it yet. Most of my rent is just below FMR even with the increase, but not much. Some are above FMR, but have reason to be so. --73.11.xx.xx





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