Rent increases (by bet [MA]) Jun 20, 2022 10:58 AM|
Rent increases (by JR [ME]) Jun 20, 2022 11:17 AM
Rent increases (by David [MI]) Jun 20, 2022 11:42 AM
Rent increases (by Sisco [MO]) Jun 20, 2022 12:49 PM
Rent increases (by Lynn [MA]) Jun 20, 2022 1:03 PM
Rent increases (by jonny [NY]) Jun 20, 2022 1:27 PM
Rent increases (by Renne [TX]) Jun 20, 2022 1:41 PM
Rent increases (by Hoosier [IN]) Jun 20, 2022 1:44 PM
Rent increases (by Dee Ann [WI]) Jun 20, 2022 5:19 PM
Rent increases (by Mr T [VT]) Jun 20, 2022 7:38 PM
Rent increases (by Steve [MA]) Jun 20, 2022 9:12 PM
Rent increases (by MC [PA]) Jun 21, 2022 8:31 AM
Rent increases (by Robert,OntarioCanada [ON]) Jun 21, 2022 9:18 AM
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Rent increases (by bet [MA]) Posted on: Jun 20, 2022 10:58 AM
I have to increase the rents on all my tenants this year. All turn overs are brought to market rent. All those that got increases didn't mind, and were very polite about it. Why? Because it was only $25 to $50, approx 2-3 %. I think they were expecting more of an increase. But when you have a lot of apts, over 20, you only need to increase yearly by $25. The plan is try to do it every year, so the rents stay just under market and the tenant expects the increase and this hopefully with cover your increased costs. It nets us approx 18k more a year. How much are your rent increases? --68.66.xxx.xx
Rent increases (by JR [ME]) Posted on: Jun 20, 2022 11:17 AM
3-5% rent increase is all fine and good, until fuel oil goes up by 50%, insurance by 15% and property taxes here have DOUBLED on some properties in the last three years. A 2 x 4 cost 6 bux and a semi skilled handyman charges $65 bux an hour to nail it to the wall. We have raised rents 20 to 35% in the last two years, because we had to. A couple of tenants complained and one actually moved out and good luck to them in finding anything cheaper. To quote one of the regular posters on this board, I am a landlord to make money, and I am not ashamed to admit it. It is not a philanthropic endeavor. --98.13.xx.xxx
Rent increases (by David [MI]) Posted on: Jun 20, 2022 11:42 AM
Tenant should be paying for heat, especially in cold climate like ME
In MI, increases in property assessments are capped at CPI or 5%, whichever is LESS --50.4.xxx.x
Rent increases (by Sisco [MO]) Posted on: Jun 20, 2022 12:49 PM
Rent should be kept at top of market without regard to expenses. --149.76.xxx.xxx
Rent increases (by Lynn [MA]) Posted on: Jun 20, 2022 1:03 PM
I"ve raised rents on some non-section 8 tenants up by $200 this year. --131.239.xx.xxx
Rent increases (by jonny [NY]) Posted on: Jun 20, 2022 1:27 PM
I too do typically 2-3% so it is a little under or over $25 per month. I look at my expenses from the previous year and then adjust accordingly. Some have actually gone down but I still do the increase because it should. That way (I figure) when they do go up more than 2 or 3% (my expenses) I'm still going to be ok and not have to hit the tenants so hard.
If and when they leave then the rent gets put at a higher rent as I've always done in the past.
I had a few tenants that I haven't increased in a few years so we jumped them up more... they both "eagerly" accepted and paid with no issues. I had one that I upped and she "freaked out"... now leaving for an extra bedroom (4 bed vs 3 bed) but is also paying almost $300 more a month... no problem. I have it listed now with a $200 price increase (vs her $40 increase) and will start showing next week. --69.201.xx.xxx
Rent increases (by Renne [TX]) Posted on: Jun 20, 2022 1:41 PM
Ditto what JR said.
On the last turnover, previously rented for $1,001 did zero cosmetic upgrades except installed a new roof, now rented for $1,600.
On the current turnover, previously rented for $900 did quite a few upgrades- new backyard privacy fence, zero carpet now, new paint throughout, new roof, new vanity, medicine cabinet, storage, towel racks, etc. in second bath, new light fixtures inside and out now advertised for $1,600.
With current Residents, we are bringing them to market and we expect a 100% turnover as our standard annual 2.9% increase simply wasn't enough to keep pace with what has been happening in our neck of the woods.
This year on the back of our county assessor's property tax notices was a full page notice giving market statistics for our county about the low days on market for selling and huge price increases when selling, etc. The underlying message was don't waste your time trying to protest your property taxes, we aren't budging.
Our experience is people rent at the top end of their budget unless they are super wise and are saving to buy their own home or pay down debt. Our new market rates will be out of the current Resident's price range.
Next renewal is currently rented for $1,288 and we will offer it to the existing Residents for $1,500 -$1,600 which they will not be able to afford, they will move and then we will advertise it for $1,800.They have been in the home for 3 years.
The second renewal in line is currently rented for $1,050 and we will offer it to the existing Residents for $1,450. Not sure if they will move or not. If they move, we will raise it to $1,700. They have been in the home for 3 years.
Yes, we will have turnover which we hate, but we will have money coming in to cover our skyrocketing expenses and we hate not being able to afford those even more than we hate turnover.
We are currently having a septic installed and the installer wasn't even able to give us a firm price! Why? The daily increasing price of diesel.
The cost to haul the equipment to the site, the cost to dig out the septic, the cost to haul away the many loads of unneeded soil, the cost to haul in the many loads of sand and gravel (whose prices have also jumped up because the cost to acquire them has increased due to diesel prices),the cost of the concrete septic holding tank was increasing due to the increasing cost of concrete, and the cost to haul the equipment off site were changing every day.
We are trying to help our Residents boost their credit scores by using Clear Now for rental payments so they will be in a better position to buy a home in the future. We don't see the huge rental increases slackening anytime soon where we are. If they can buy with a fixed rate mortgage, at least they will have some degree of control over their housing expenses. --12.196.xxx.xxx
Rent increases (by Hoosier [IN]) Posted on: Jun 20, 2022 1:44 PM
We do ours strategically...charging a bit more (about 8% this year) to those who pay late, ask for "special" repairs/improvements, contact us with requests often, don't keep their places/yards as clean, etc....in other words the ones who take more hand-holding. We also implemented a $20/month "convenience fee" for those who won't go on auto-pay .
For excellent tenants the increases are less...maybe 3% this year.
We also have one unit we are trying to "time" exit of the tenant so we can sell it...so that one we're holding off any increases for a few more months.
Rent increases (by Dee Ann [WI]) Posted on: Jun 20, 2022 5:19 PM
Our increases have always been minimal, but tenants also pay for lawncare and snow removal services, water bills (which include street lights, garbage pickup and winter street snowremoval). Tenants also pay for utilities. All thatadds up if we were to pay for it.
When someone moves, rent is kicked up considerably. We also try to improve properties each year. A larger amenity that will help attract tenants the next go around for one place a year; smaller amenities for others, when someone moves...whatever we've been wanting to do but couldn't because too interruptive with someone living there. Less down time between rentals that way, and we can plan with available contractors ahead of time. --75.11.xx.xx
Rent increases (by Mr T [VT]) Posted on: Jun 20, 2022 7:38 PM
Sisco is 100% right. That said I do not have everyone at Market Rent. I was listening to Dave Ramsey recently and he said if you have little to no turnover, your rents are too low. Then it gets harder to raise them in the future when you get way behind. You are not doing yourself any favors by not keeping rents at Market. You neeed to raise rents every year. I have more apartments than ever now and I have next to no turnover. I know what I am leaving on the table each month and it makes me sick. I am older now and for many years I was able to keep rents affordable by doing everything myself. But I can see today that was not a good plan. --199.188.xxx.xx
Rent increases (by Steve [MA]) Posted on: Jun 20, 2022 9:12 PM
Bet, I'll be sending of sending out increase notice the first week of July with an effective date of September 1 or October 1. Most will get a $75:00 - $100.00 increase. However, my t PIA tenants will be getting at either a $250.00 or $350.00 increase. As required in MA I will actually be sending out notices to quit along with the offer of a new tenancy with the rent adjustment. --72.93.xxx.xx
Rent increases (by MC [PA]) Posted on: Jun 21, 2022 8:31 AM
Yes, everything goes up. Sometimes we had to go with getting paid or letting it sit for a month or 2, doing repairs/upgrades and restarting a search. You pick your poison. --73.230.xxx.xx
Rent increases (by Robert,OntarioCanada [ON]) Posted on: Jun 21, 2022 9:18 AM
Not only is going to market but having the capital for major repairs and renovations. Roofs, boilers, hot water tanks, windows, plumbing along with other components do not last forever. Now more then ever is to look at improving efficiency of heating system where high efficiency gas boilers, indirect hot water hot water tank, electronic boiler control along with insulating all the heating, hot water pipes in basement will reduce energy consumption. A metal roof is more expensive upfront which can outlast three shingle roofs. Found by shopping at the Habitat for Humanity restores for appliances, fixtures, tiles, paint to stretch dollar much further then the big box stores. Where every store was able to buy what was required for buildings. Commercial locks are more expensive upfront but outlast the cheap grade 3 residential locks. Porcelain tiles outlast many residential floors where a good cleaning then rent without any downtime. What is more expensive over the long will cost less. While some tenants may move out the standard of rental unit they are moving to is going to be a lot lower. --216.110.xxx.xxx
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