Rent increase amount
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Rent increase amount (by Roy [AL]) Jan 30, 2024 9:13 AM
       Rent increase amount (by DJ [VA]) Jan 30, 2024 9:43 AM
       Rent increase amount (by WMH [NC]) Jan 30, 2024 9:53 AM
       Rent increase amount (by Just Tim [AR]) Jan 30, 2024 10:06 AM
       Rent increase amount (by Roy [AL]) Jan 30, 2024 10:17 AM
       Rent increase amount (by WMH [NC]) Jan 30, 2024 10:40 AM
       Rent increase amount (by Jim in O C [CA]) Jan 30, 2024 10:46 AM
       Rent increase amount (by Sisco [MO]) Jan 30, 2024 10:53 AM
       Rent increase amount (by Deanna [TX]) Jan 30, 2024 10:55 AM
       Rent increase amount (by jonny [NY]) Jan 30, 2024 11:07 AM
       Rent increase amount (by Oregon Woodsmoke [ID]) Jan 30, 2024 11:24 AM
       Rent increase amount (by Oregon Woodsmoke [ID]) Jan 30, 2024 11:27 AM
       Rent increase amount (by Roy [AL]) Jan 30, 2024 11:45 AM
       Rent increase amount (by Deanna [TX]) Jan 30, 2024 12:20 PM
       Rent increase amount (by S i d [MO]) Jan 30, 2024 12:53 PM
       Rent increase amount (by Roy [AL]) Jan 30, 2024 1:02 PM
       Rent increase amount (by tim [AZ]) Jan 30, 2024 1:06 PM
       Rent increase amount (by S i d [MO]) Jan 30, 2024 1:54 PM
       Rent increase amount (by Jeffrey [VA]) Jan 30, 2024 2:24 PM
       Rent increase amount (by Jeffrey [VA]) Jan 30, 2024 2:25 PM
       Rent increase amount (by dave [CA]) Jan 30, 2024 4:36 PM
       Rent increase amount (by zero [IN]) Jan 30, 2024 5:26 PM
       Rent increase amount (by Roy [AL]) Jan 30, 2024 6:24 PM
       Rent increase amount (by Ray-N-Pa [PA]) Jan 30, 2024 9:01 PM
       Rent increase amount (by 6x6 [TN]) Jan 30, 2024 9:06 PM
       Rent increase amount (by WMH [NC]) Jan 30, 2024 9:32 PM
       Rent increase amount (by Roy [AL]) Jan 30, 2024 9:43 PM
       Rent increase amount (by S i d [MO]) Jan 31, 2024 8:13 AM
       Rent increase amount (by zero [IN]) Jan 31, 2024 9:39 AM
       Rent increase amount (by 6x6 [TN]) Jan 31, 2024 9:36 PM
       Rent increase amount (by Roy [AL]) Feb 1, 2024 8:11 AM
       Rent increase amount (by 6x6 [TN]) Feb 1, 2024 8:04 PM
       Rent increase amount (by Mick [CA]) Feb 2, 2024 5:08 AM

Rent increase amount (by Roy [AL]) Posted on: Jan 30, 2024 9:13 AM

If you increased your rents in 2023 and plan on doing it again in 2024, how do you determine the amount of increase? Do you use a flat fee or do you use a percentage of the existing rent to determine the increase? Most of my Class C rents are currently in the $600-$1,000 dollar range and last year I used a flat fee increase of $25.00.

How do you calculate what the market will bear with your tenants?

Rent increase amount (by DJ [VA]) Posted on: Jan 30, 2024 9:43 AM

My personal opinion is that a percentage seems most fair - especially if you have multi-units where neighbors will talk & compare their increases. Rounded off to the nearest dollar (or $5).

Using you numbers above, the $600 folks got a 4% increase, and the $1000 people got a 2.5% increase. It looks like you kind of averaged it out.

In comparison, if they both got an increase of 3%, the amounts would be $18 and $30.

Not knowing how many you have at what price-point, which way would make you more money?

With that said, I think it is also reasonable to have a policy of a bigger increase for someone who has caused you more expenses during the past year - like frivolous repair calls, needed to give them a notice to cure something, etc.

Rent increase amount (by WMH [NC]) Posted on: Jan 30, 2024 9:53 AM

I pull it out of thin air. Literally. After looking around at markets and considering the house, etc, we will say to each other, "Well, what do you think?"

It depends on the house at that point, and what the current rent is. Could I get more if the current tenant left? Yes? A lot more? Then the increase is larger. Is it about market rate already? $5, $10 raise if any. And yes, I collect the subsequent increase in deposit too. $10, $20, whatever.

Rent increase amount (by Just Tim [AR]) Posted on: Jan 30, 2024 10:06 AM

My leases auto renew with a $30-40 increase each year that they stay. The amount is based on approximately 3% of their original lease amount. Most people can adjust to that type of increase yearly even if they are on a tight budget. I'm happy with that amount and the extra money it puts in my pocket each year, although those increases have not kept pace with market rents the last 5-7 years.

Rent increase amount (by Roy [AL]) Posted on: Jan 30, 2024 10:17 AM


I look at the house also and like you ask myself, 'if this tenant moved out, could I get more rent?' The answer in many cases is Yes.

Right now I have a nice 3/1 house where the 4 year single female tenant is struggling each month to pay $750.00. If she moved out, I could easily get $950/month for that house. And since she did not get a rent increase in 2023, she is overdue for one now. So instead of the usual $25, she will get a $50 increase.

Rent increase amount (by WMH [NC]) Posted on: Jan 30, 2024 10:40 AM

I don't know if any of ours struggle to pay the rent - I don't want to know. Do I get it on time and in full? Good enough. I don't want to know if they had to sell blood to pay it.

I look at the house only, not the tenant. Not anymore. We held off raising the rent too much on one old lady long-term tenant until it was ridiculous, finally raised it to market rent last year and it was hard for them to increase the deposit enough (I did put them on a payment plan for that) PLUS pay the rent increase. But now they are paid up and they pay the rent too (her daughter is involved.) She's been there since 2009, and not raising her rent enough over the years turned out to be unkind overall.

PLUS we somehow realized she is younger than my husband and we were treating her like she was an 80 year old invalid.

Rent increase amount (by Jim in O C [CA]) Posted on: Jan 30, 2024 10:46 AM

My annual increase is $50 which covers my tax and insurance increases unless the tenant is a PITA then we are looking at $275 to $350. My last tenant moved because she knew another $350 increase was coming.

Rent increase amount (by Sisco [MO]) Posted on: Jan 30, 2024 10:53 AM

My lease’s automatically renew for another year with a 2.9% rate increase. If after checking the market price, I raise the rate to market price. I had last year that had a 15% increase so as to bring it in line with market prices.

Rent increase amount (by Deanna [TX]) Posted on: Jan 30, 2024 10:55 AM

Before 2020, increases were generally very cautious-- $5, $10, $25, because people would move rather than have a $25/month price hike. So I needed to make my increases at incoming. My tenant pool was stagnant. There was nothing that brought people into the area, so most people grew up here their whole lives. The average household income was about $25-$30k. (Average household income is now around $37k/year.) So because of that, rents were stuck 10-15 years behind bigger cities with more robust economies.

Now, with all the rules changes, we're flooded with people not-from-around-here. The increased demand is reflected in the increased rent. Things are still very economical, especially compared to 30 minutes this way, or an hour that-a-way, but they're much higher when compared to themselves. The actual increases are arbitrary-- "Can I get $x/month?" and then I see if I can. The answer is always yes, but I'm not the most ambitious with my pricing.

While I'm getting lots of traditional families, I'm also having a lot more groups of two/three/four working adults who are teaming up to split costs. So that also helps me get more for a highly limited resource than I would with my traditional tenant pool.

However, I'm also discovering that a lot of noncitizens are eligible for government housing. Ranking local housing, there's government housing at the bottom, 90% of the local landlords, me, and homeownership. A lot of people come to me to escape from the bugs and druggies of government housing, and the successful ones go on to buy their own homes. But for people not-from-around-here, government housing doesn't have that stigma; it's just cheap rent. (In theory. It's tied to income, where if you make too much, your rent goes up, so I'm still not sure how a group of adults grossing $10k-$12k/month collectively is able to have "economical" subsidized housing.)

Rent increase amount (by jonny [NY]) Posted on: Jan 30, 2024 11:07 AM

Roy ... I look at what my taxes, insurance and any other utilities, etc that I pay were from the previous year to what I know now (and add in a 2-3% hike for the ones that I don't know because even though they say "no increase"... there is).

I then look at that difference and I know that I don't want to "eat" that amount so then I increase above it.

So for example, if the difference in the two is say $150.00 then I know that I need to raise it to at LEAST $12.50 per month TO BREAK EVEN. Do I want to break even? No, I don't so then I most likely would double the amount to maybe $25.

The other thing you need to figure into the equation is any repairs or expenses that you think you will (or know you will) be doing. Now, that doesn't mean that if you are thinking "oh, I'm going to paint the house in 2024 and the quotes I'm getting are $5,000 so I'm going to raise my rents by $450 per month" is going to happen it's not (usually) BUT it's something to consider that you ARE going to want to pay attention to and ensure you are sustaining the property and adding value to not just YOUR investment but also the Tenant's appeal.

The same goes for windows, furnaces, etc... what it does FOR THEM as much as it does for you.

Don't necessarily pass the buck on to them immediately but pass it on to the point that when you are raising the rent they aren't thinking "for what?"

Rent increase amount (by Oregon Woodsmoke [ID]) Posted on: Jan 30, 2024 11:24 AM

I was giving increases at the rate of inflation, but had to slow that down. Tenant income isn't going up and there is no point in going up beyond what the tenants can pay.

Feds claim only 3.2% for last year and that would be a reasonable amount to increase rents and a good enough reason for doing the increase.

My property tax assessments went way way up, and I was scared to open the tax bill, but the actual property taxes did not go up. So just insurance went up and the cost of repairs went up.

I have three brand new tenants who moved in at the very top of the market, so I don't raise their rent the first renewal. I don't want to provoke them into thinking about buying instead of paying higher rent until I've gotten at least two years out of them.

Rent increase amount (by Oregon Woodsmoke [ID]) Posted on: Jan 30, 2024 11:27 AM

I'll see what happens in the spring, but it doesn't look like anyone else is increasing rent, judging by the asking prices for vacant units. I may still be at the top of the market without doing any increases.

House prices to purchase are still going up in an insane rate.

Rent increase amount (by Roy [AL]) Posted on: Jan 30, 2024 11:45 AM


Are 'noncitizens' the same people crossing the Rio Grand river every day? I have always wondered where they ended up living.

Here in my town we have a 3-5 month waiting list for people to move into government housing and/or to get a Section 8 voucher. Our homeless population is increasing too.

Rent increase amount (by Deanna [TX]) Posted on: Jan 30, 2024 12:20 PM

Indeed. Govt housing has a 6-8 month waiting list around here as well, but time passes quickly. The majority of my incomings are from Venezuela, but there's a good representation from Colombia and Peru as well. At first I was expecting primarily single adult males, because that was the bulk of who I was seeing beginning in Oct '22, but as time progressed, I realized they were getting a foothold for their wives and kids to catch up to them. So, I might have two brothers and a friend move into a 2/1, but eight months later, each brother has a wife and two children, and a party of three adults turns into a party of five adults and four children. It can be very frustrating, especially because they often drift from house to house among their friend groups, depending on who's irritated at who. (For example, A might originally rent a garage apartment with B, C, and D, but then he decides to move into a house with E and F. But then he changes his mind and stays at the garage apartment, until his wife and kids catch up, and then he wants his own house. Meanwhile at the garage apartment, roommate B decides he doesn't like working at the factory, but he gives his "spot" in the house to his friend G who works in another town. Very casual and fluid, which is not my preference, but it works until it doesn't...) There is also a weird love of parking on the front grass that I can't seem to break them of. We have ample street parking, and ample driveway space, but everyone wants to park on the grass. @_@

Rent increase amount (by S i d [MO]) Posted on: Jan 30, 2024 12:53 PM

I've discussed my strategy here before. I set up search criteria on Zillow as if I were a tenant, for the size, bedrooms, and locations where I have rentals. Every 1-4 days, I get an email with what's on the market. This keeps me in touch with my competition, so I always know "what the going rate is" (aka, the Market Rate).

I can't see any other strategy working as well as shopping your competition and beating them... slightly. I work for a Fortune 500 retailer, and that's what we do. No need to reinvent the wheel. Play like the big boys do!

For existing customers, I default to 2.9% if no one does anything and normally that keeps me right where the market is. But if we get below market like Covid when rents went crazy, I'll raise it with the renewal notice.

As you may know, I also tend to cycle out my tenants every 3-4 years. Gives me a chance to refresh the unit and apply their deposit to keeping the place nice. This avoids the dreaded "10 year turnover" when you have to replace everything and only have one measly deposit to cover everything. Better to have 2-3 deposits. This also means rents get bumped to market every 3 years or so.

Rent increase amount (by Roy [AL]) Posted on: Jan 30, 2024 1:02 PM


Hey there buddy, do you cycle out your 3-4 year tenants? Just keep increasing the rents until they move voluntarily or some other way? The one I spoke about here needs to be cycled out.

Rent increase amount (by tim [AZ]) Posted on: Jan 30, 2024 1:06 PM

I take into account the rent rates of competitors in the neighborhood, the condition of the rental, how well the tenants are taking care of the property, the annual PCI, any increases in my overhead (insurance, property tax rate, etc), how often the tenants have a problem that isn't my fault, how often the tenants are late with the rent, if the tenants are reasonable and respectful (as I am with them), and then I balance it out a little depending upon whether I want to keep the as a tenant or provide some incentive that may help them decide to move. --108.201.xx.xx

Rent increase amount (by S i d [MO]) Posted on: Jan 30, 2024 1:54 PM

Roy, it's usually a combination of keeping my rents where they need to be plus the generally transient nature of Class C. The Class C tenants usually only stick around if the LL keeps the rent low and never bothers them on lease infractions.

Rent increase amount (by Jeffrey [VA]) Posted on: Jan 30, 2024 2:24 PM

Roy, $25 is too low. Flat fee should be at least $50.

Rent increase amount (by Jeffrey [VA]) Posted on: Jan 30, 2024 2:25 PM

And if they decide to move, most likely you will be able to get at least $100 more than what they were paying.

Rent increase amount (by dave [CA]) Posted on: Jan 30, 2024 4:36 PM

SID -- I'm kind of surprised as you are a seasoned LL on here.

the mindset of using deposits towards upgrades and rehab make ready really isn't what is supposed to take place.

damage, missing and excessive wear .... yes.

normal wear and tear, end of useful life .... no

while we all may have a bit of fudge room and slush on charging deposits,.....all it takes is one vacated tenant getting back in your face with the ......excuse me....!

Rent increase amount (by zero [IN]) Posted on: Jan 30, 2024 5:26 PM

I admit that I was only increasing rents when I had a turnover.

Then when I started reading here I realized that I was doing it wrong. I had one guy with 16 years and no increase. I pay water at that place. So my water, insurance and property taxes all increased but his rents didn't.

That is long gone now. I do not have a perfect solution but I have it set for a 3% increase minimum per year to the next $5.

Some I go a little higher just because. but for the most part that is what I do with my current tenants.

Just got a deposit today where I increased rents by 3% plus fifty cents to make it even. They paid. Never complained and are still below market.

I sent out I think half a dozen notices last month, just as reminders. --107.147.xx.xx

Rent increase amount (by Roy [AL]) Posted on: Jan 30, 2024 6:24 PM

hey Zero,

Whenever a LL has long term tenants that never move out, that is proof that your rents are too low! I take pride in knowing that my rents are the highest on every block where I have a rental house. I know local LL's who are still getting the same rent ($350.00) they started out with twenty years ago!

Rent increase amount (by Ray-N-Pa [PA]) Posted on: Jan 30, 2024 9:01 PM

Our rents are in same price more or less. A small 1 BR in a class C place is $650 and a 3 BR is about $1,100. Class Bs are an extra $300 a month.

When you reach into your wallet, what is the most common bill you pull out of your wallet? For awhile things were split between $20 and $50, but it seems back down to $20 again here. I would use that as my measure for pressure. So $20 or even $25 is fair here

Rent increase amount (by 6x6 [TN]) Posted on: Jan 30, 2024 9:06 PM

Rent increase amount (by WMH [NC]) Posted on: Jan 30, 2024 9:32 PM

I raised a tenant's rent this year without raising his rent. Well I take that back - I raised our INCOME on his place without raising his rent.

We required him to start mowing his own lawn. Lawn Guy was charging $60/week in the approximately 6 month season. Tenant's lease had always called for him to mow because he started out at a SFU, but his riding lawn mower was stolen (true) and we had our guy do it because there is also an ADU on the premises and it needed mowing. That turned into the original tenant never getting a new mower. Of course.

Finally said he had to start doing it again or paying Lawn Guy himself. He somehow got his hands on a mower and has been doing it ever since. That's a big raise for us without a raise in rent on his part.

Rent increase amount (by Roy [AL]) Posted on: Jan 30, 2024 9:43 PM

Ray-N-PA - According to Jeffrey, the master guru of soothsayers, $50.00 is what my increase should be and not my usual $25.00.

Rent increase amount (by S i d [MO]) Posted on: Jan 31, 2024 8:13 AM

Dave... don't be surprised. I'm not scamming tenants. It's the reality of the situation. They do damages: I bill the security to fix or replace, as appropriate.

The mistake many landlords make is they count a lot of things that are damage as 'normal wear and tear.' No, they are damages. I simply catch those damages a lot sooner than most landlords do.

Case in point: let's consider mini-blinds. Just had a move out where the tenant's dog must have eaten a pound and a half of vinyl after devouring several slats off every window blind. She was a 3 year tenant, so I bill full replacement cost. $225 to refit the unit.

By contrast, the 10 year landlord most likely shrugs his/her shoulders and eats that expenses because "The blinds were fully depreciated anyway" or the line I never understand "Well, they paid me $X rent during that time so I won't charge."

Make sense?

Rent increase amount (by zero [IN]) Posted on: Jan 31, 2024 9:39 AM

Roy I disagree with you about long term tenants. While I didn't raise rents for years on the one guy I have been increasing rents on everyone for a few years now.

I believe that people are not leaving because I provide a good place for them, there are no other places as nice in the same price range, and probably the most common is they are complacent. Nobody wants to move across town or a few blocks over. Laziness is a real non-motivator.

Most times when I get a move out that I didn't cause it is where someone is getting into a place better suited for them. Maybe the family grew and they need more space. Maybe the family got smaller and they need less. Rarely do I get a mover because they got a job out of state, but that could happen.

When a tenant moves I evaluate things like the paint, flooring, maybe tile in bath or around the kitchen. Now if a tenant lives in the place for a decade and moves I still evaluate all that.

But I do not put the high end carpet down in my duplexes. It seems to last the same as the mid range stuff. Maybe I get four years out of it. Tenant stayed a decade so I got double. If there are horrible stains or rips the tenant covers the costs anyhow.

The paint I can get a few years out of without touching up a lot. So I have saved when the tenant stayed a decade on that as well.

Updates are not more costly. If the tenant stayed in the place for a decade and didn't mind no tile above the shower then that's fine. When he moves out I update certain things to the new standard I have in place.

When I get notice I start a list of things that I want to do before I put it back on the market.

I am sure this system has flaws. I am increasing rents by at least 3% annually. Those that were well under market get a larger bump. --107.147.xx.xx

Rent increase amount (by 6x6 [TN]) Posted on: Jan 31, 2024 9:36 PM

How much did you decide to raise your rent?

Rent increase amount (by Roy [AL]) Posted on: Feb 1, 2024 8:11 AM


Some will geta $50 increase, some will get a $25 and the ones who are less than 2 years in tenancy will get 0. Today I am renting out my last vacancy and the rent on this one has increased from $750 to $875.

Rent increase amount (by 6x6 [TN]) Posted on: Feb 1, 2024 8:04 PM

Thank you Roy.

Rent increase amount (by Mick [CA]) Posted on: Feb 2, 2024 5:08 AM

I raise 10%.

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