 Increase to market value? (by Jason [VA]) Mar 19, 2023 10:28 PM
 Increase to market value? (by Phil [OR]) Mar 20, 2023 2:00 AM
Increase to market value? (by myob [GA]) Mar 20, 2023 6:46 AM
Increase to market value? (by Ray-N-Pa [PA]) Mar 20, 2023 8:04 AM
Increase to market value? (by myob [GA]) Mar 20, 2023 9:14 AM
Increase to market value? (by Ray-N-Pa [PA]) Mar 20, 2023 7:08 PM
Increase to market value? (by Hoosier [IN]) Mar 20, 2023 9:33 PM
Increase to market value? (by Jason [VA]) Posted on: Mar 19, 2023 10:28 PM
Message:
I have a 4/2 with 4 year tenants in place. I've raised the rent year after year, but now that it's renewal time, I'm 16% under market value.
These aren't what I would label as great tenants, but they do pay on time every month. My dilemma is how much to increase the rent. If I raise 16%, that's a significant amount ($274). But right now, that's what they would have to pay if they were to stay in the same zip code.
I wouldn't be sad to see them go, but it's starting to look like this is going to be one busy spring. --71.63.xx.xx |
Increase to market value? (by Phil [OR]) Posted on: Mar 20, 2023 2:00 AM
Message:
Part of what you need to consider is the expense of placing a new tenant. Will raising the rent to the full 16% cause them to move? How long does it take to get a new tenant in? You are going to lose at least a week of rent in almost any turn over.
We just raised rent. Some got a higher percentage because we would not be sad to see them go . --76.138.xxx.xxx |
Increase to market value? (by myob [GA]) Posted on: Mar 20, 2023 6:46 AM
Message:
200.00 thats it. --108.239.xx.xx |
Increase to market value? (by Ray-N-Pa [PA]) Posted on: Mar 20, 2023 8:04 AM
Message:
I am guilty!
I don't always raise rents to market level. In fact I routinely raise them only a limited amount so that I retain those who I want to keep.
Do you want to keep these folks?
If you do, I would be looking at about $100/month increase. If you are on the fence maybe $150/month. If you want them gone, raise it to market level.
Not only are there cost with getting your unit ready for the next family, but when I hear market rent, I also hear that your four year old paint is still as fresh and shiny as the day that they moved in. Typically, its not. There is value in time and money. Most landlords don't understand the cost of a vacancy. You might want to squeeze someone out at 8-10 years if they are just alright. But you try to retain them to get complete use out of your existing systems normally --24.101.xxx.xxx |
Increase to market value? (by myob [GA]) Posted on: Mar 20, 2023 9:14 AM
Message:
Phil that thinking is what keeps LL's scared. WHY invest if your afraid or decision making?
Change your tenants like you swap your underwear front to back and inside out. Don't hold them forever.
I can see it now. LL cowering in the corner biting his nails-- saying "Oh my gosh I'm gonna have a vacancy"!!!! What can I do!!!! Oh! what can I do? --108.239.xx.xx |
Increase to market value? (by Ray-N-Pa [PA]) Posted on: Mar 20, 2023 7:08 PM
Message:
Amen, MYOB!!!
It is not a matter of if you have a vacancy, it is a matter of when. And if you manage things correctly, you will find that you are actually making money at each vacancy. Making additional money should not scare any one. --24.101.xxx.xxx |
Increase to market value? (by Hoosier [IN]) Posted on: Mar 20, 2023 9:33 PM
Message:
If market rate is 16%, then I'd do it!
Now, here is an approach I've done with decent tenants where they are "decent" but I want to reinforce a behavior, such as paying on time...
Dear Tenant,
We will be adjusting your rent by 16% effective 5/1/23, or $274...making your new rent $1,987/mo. However, we are willing to suspend $70 of the increase so long as ???? (all future payments are made on time is what I used). As a result, your new payment will be $1,917/mo.
If any late payments are received going forward, the higher rate will automatically be set for the remainder of the lease.
Regards, LL --99.92.xxx.xxx |
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