Rent raise w/ vacant poll

Personally, I do not do this because I consider it business suicide. Who here raises rents while they have other units vacant? And if yes, does it hinge on having a high # of units? --174.249.xx.xx

Rent raise w/ vacant poll (by Sisco [MO]) Posted on: Oct 21, 2024 11:39 AM
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Yes, I raise rents at lease renewal as per contract. --149.76.xxx.x

Rent raise w/ vacant poll (by Deanna [TX]) Posted on: Oct 21, 2024 11:40 AM
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In my poor, rural, isolated market, I traditionally raised rents at turnover, but otherwise refrained from moving people's cheese, because my tenant pool was marginal enough to be willing to move with just a $25 difference in rent. People lived here for 30, 40, 50 years and had ideas as to what was "affordable" and what wasn't. The average paycheck was about $20k/year, but a move-in ready house was $40-$60k. Anyone who wanted a house and was good with money had a house. I left the bottom of the barrel to others, and did my best with being that in-between niche between renting vs home ownership.

Fast-forward to today, and my tenant pool has shifted considerably. Instead of being stagnant, there's a large number of people from South America who don't have that history with the town, don't have those expectations/memories of "Oh, yes, I remember when Fred lived in this house and he was only paying $100/month--- why are you asking for $500?"

But I also have a few people who didn't move on, who hunkered down and are stuck in 2012, 2015, 2019 prices.

So those two things combined--- the shifting of my market, the influx of new people, and the rise in demand--- have allowed me to shift from my original strategy to now have an annual $10/month rent increase each year. It's gentle enough that they can easily absorb it, and they don't get penalized for being stable customers--- but it accumulates enough so that if someone stays with me for 10 years, I'm not as far under-market as I would be if I had a zero annual increase. But when you multiply that extra $10/month times 10, 20, 30 houses--- it becomes more significant, even though I know it's a very timid increase compared to what urban ll's are able to get.

The vacancy that I have is independent of the people who already do business with me. If I have a 1/1 garage apartment available, that's irrelevant to my people who are in 2/1's or 3/2's or wherever.

Right now, I'm at 25, with some miscellaneous stuff. I have a 1/1 garage apartment that's currently vacant, but will be occupied before the end of the week. And I have a 2/1 that's becoming vacant tomorrow, but demand is high and I won't have any problems filling it. --137.118.xx.xxx

Rent raise w/ vacant poll (by Deanna [TX]) Posted on: Oct 21, 2024 11:42 AM
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Oh--- and in terms of my market shifting, now people are making maybe $25-$30k/year, but those $40-$60k houses are selling for $200k-$300k. Even the $10-$20k houses are selling for $80-$100k. It's crazy. --137.118.xx.xxx

Rent raise w/ vacant poll (by WMH [NC]) Posted on: Oct 21, 2024 12:29 PM
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Maybe 5 or 10 dollars, not more these days. --173.28.xx.xxx

Rent raise w/ vacant poll (by WMH [NC]) Posted on: Oct 21, 2024 12:50 PM
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Had my worst application ever yesterday...I've had bad inquiries before but they never made it to the actual application. This one did, at the urging of her private employer who lives down the street.

Eviction for possession, so she had to be dragged out owing almost $3k. "Involuntary" repossession of her car owing $10k. Multiple unpaid big dollar bills to Gas, Power, Phone and Cable companies (along with the usual student loans, furniture rentals, etc.)

She makes over $70k a year but it's all 1099 income, so she probably owes the IRS too.

Her employer wants to sign the lease and rent it back to her. No thanks. If he ever fires her that leaves us to get her out.

Nope. --173.28.xx.xxx

Rent raise w/ vacant poll (by zero [IN]) Posted on: Oct 21, 2024 2:01 PM
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I raise rents annually.

When a place comes open I raise it to whatever I think the market will bear.

Used to only raise when empty. My 19 year tenancy was killing me.

Have an apartment empty right now, filled possibly tonight or tomorrow. Last week I sent out four rent increases. --107.147.xx.xx

Rent raise w/ vacant poll (by S i d [MO]) Posted on: Oct 21, 2024 3:07 PM
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Rents go up annual by 2.9% on residential leases and 3.5% on commercial leases. No one complains. No one moves. I have 2 vacancies at the moment... three apps on one place. No apps on the other. --184.4.xx.xx

Rent raise w/ vacant poll (by WMH [NC]) Posted on: Oct 21, 2024 3:13 PM
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2.9% would be about $50 on a lot of my places. Too much per year now that there are too many high-end places for rent OR a lot of places with pretty pictures and lower entry points (lower deposits.)

No hard and fast rule these days - some of my places may actually be too HIGH these days after the last few years of escalating rents. Rather than raising, I may consider LOWERING the rent on some spaces. Have to think about that... --173.28.xx.xxx

Rent raise w/ vacant poll (by Robert J [CA]) Posted on: Oct 21, 2024 3:21 PM
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At one time I have over 100 low income rental apartments, meaning my rents were below the average level, but well maintained, I'm a contractor and easy to do.

But one year the economy started to falter. While incomes declined, costs were rising. Here is a small list of higher landlord costs:

Water, sewer and power were up over 21%.

Insurance rose an average of 40%.

Labor costs were up over 18%.

Cost of raw materials for repairs up over 30%.

So I sent out notices to my tenants that I've tried to keep rents down and on average, tenants were paying 60% of the current market value. Making government thinking gouging landlords an extra 20% wouldn't matter. But in my case, if I didn't raise rent the allowable 4%, I'd be heading towards loosing money, and this was "income property".

My tenants went to war, how dare I charge them an extra $24 a month?. Even tough they all had newer cars, HD wide screen tv with full cable. And they had takeout 6 nights a week.

So when it comes to money, tenants are never our friends.

The new apartment complex next door had an open house. 1 Bedroom were $2,750 per month. Two bedrooms were $3,250 per month. And three bedrooms were going for $4,200 per month. And my tenants were paying on average $900 for a 1 bedroom and $1275 for a 2 bedroom. My tenants in this property decided to all give me an extra $100 for that month because I kept rents really low. That's called rent control. --173.205.xxx.xxx

Rent raise w/ vacant poll (by MikeA [TX]) Posted on: Oct 21, 2024 3:39 PM
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I've always considered those two separate topics. One doesn't really relate to the other and the strategies to resolve each are different.

That said, both are dependent on market conditions. I have had almost no turnover as a result of rent raises but I keep my units priced just below market so it makes it hard to tenants to find a better deal. I have more problem with tenants purchasing a house or moving out of town than jumping to another local rental. I've not had a vacancy last more than 2-3 weeks in over 20 years, usually it's less than a week. If I were facing months to fill a vacancy I would probably be more likely to look for things to keep tenants happy. That might include smaller or no increases for a year, some small upgrade like a ceiling fan, or fresh paint in one room. The strategies to address a long running vacancy are completely different so I don't really see the relationship. --209.205.xxx.xx

Rent raise w/ vacant poll (by 6x6 [TN]) Posted on: Oct 21, 2024 4:28 PM
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I would have thought you raised your rents as needed? --73.108.xxx.xxx

Rent raise w/ vacant poll (by Jason [VA]) Posted on: Oct 21, 2024 4:29 PM
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Like Mike, they aren’t related in my eyes. My job is to provide a service for a competitive price. If I’m providing a service for considerably less than my competition, I’m failing and my market analysis would need improvement. --172.56.xxx.xxx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 4:58 PM
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I think posters markets on here are VASTLY different. I don’t raise on tenants when I have a vacancy. I just started last winter adding in the auto rent raise annually. We will see how that goes, I expect move outs. Jason, for me to fill a vacancy I have to go way below “market”. That’s why I don’t trust the market comps anymore. I trust a signed lease as true market value. For example my one unit now the market says it should be $980. Dropping the 3rd time tomorrow to $720. Nope, no improvements to do, no more marketing to do. That’s why I’m REALLY hesitant to raise rents when I have vacancies. Doesn’t make business sense to me. --24.152.xxx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 5:01 PM
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I consider them related for sure. --24.152.xxx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 5:04 PM
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Here’s another example. I have a unit where the girl is now due and “annually” hasn’t had a rent raise in 2 years. The comps say she should be at $1,000. She’s at $820. If she moved, I wouldn’t get $820. I know that for a fact. So she doesn’t get a rent raise right now due to other vacancies. --24.152.xxx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 5:16 PM
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Also, if it takes me 4-6 months to fill that girls vacancy at $800, that’s $3,200 to $4,800 lost. Poof! GONE! Not worth the risk of sending that rent raise letter at the moment. --24.152.xxx.xx

Rent raise w/ vacant poll (by Ray-N-Pa [PA]) Posted on: Oct 21, 2024 5:58 PM
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My rent increases tend to be below market and that sets things up where some of these folks stay a long long long time. So when the place does become vacant, I dump a sizable sum in getting the place upgraded. I try to offer the unit at the middle price point of the market when it goes back on to the market.

How big of an increase is that? It can be $200 or it could be even more. I know I should push the increases even harder, but I am a slow and steady kinda person. I really don't need to push the market place that hard any longer to make things work for me.

If I were a landlord for only 10 or so years, I know I would be pushing it a great deal harder. --24.101.xxx.xxx

Rent raise w/ vacant poll (by Sisco [MO]) Posted on: Oct 21, 2024 8:05 PM
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Sell NE. From what I have gleaned from your posts, better advertising, marketing doesn’t exist. Motivated people being transferred to your town don’t exist. Everyone who can buy wants to buy.

I say sell. --149.76.xxx.x

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 8:08 PM
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I’m leaning towards selling some of them. Seems to make the most sense at the moment. Especially since the one I sold in the spring sold for way more than I anticipated. --174.240.xxx.xxx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 8:13 PM
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And you’re right about those things Sisco - wink, wink nudge nudge, nowhere else to advertise. Nowhere else for incoming people to look for units around here, realtor bring trash, and no property managers. It is what it is. --24.152.xxx.xx

Rent raise w/ vacant poll (by Sisco [MO]) Posted on: Oct 21, 2024 9:23 PM
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Given those conditions, along with lowering rents at a time of high inflation. You need to sell now , it is urgent! There is no reason to expect to sell given market conditions, in a functional housing market you couldn’t sell. But somehow, people want to buy in this market…..get out while you still can. --149.76.xxx.x

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 9:43 PM
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I’m not looking to get out entirely. --24.152.xxx.xx

Rent raise w/ vacant poll (by Sisco [MO]) Posted on: Oct 21, 2024 10:11 PM
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I have never heard a place described that is as bad as yours. --149.76.xxx.x

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 10:15 PM
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It’s not bad if I start off 20% below market. Cheaper speeds up the process. --24.152.xxx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 21, 2024 10:21 PM
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Really underpriced rentals and really over priced sales. So make it make sense, because it doesn’t. If the high priced listings are actually renting then they aren’t screening and they’re getting garbage tenants. And they’re advertising the same places I am. I googled “for rent in zip code” this evening and its was tons of air bnbs that showed up before any rentals. So any unicorn moving from out of the area is going to see what I googled, which isn’t much. --24.152.xxx.xx

Rent raise w/ vacant poll (by Dave [MO]) Posted on: Oct 21, 2024 11:57 PM
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NE, if the socialist wins raise the sale price $25k. This is when I will hit the sell button. --199.200.xx.xxx

Rent raise w/ vacant poll (by Sisco [MO]) Posted on: Oct 22, 2024 6:50 AM
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If you must lower your rents, then your future is far worse than the present.

Time to run for the exit. --149.76.xxx.x

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 7:02 AM
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On the current vacancy, I’m lowering the list price when compared to the competition, but still renting higher than the departed tenant. So I’ll be up in monthly rent but down compared to comps. --24.152.xxx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 7:11 AM
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I’m kind of confused why you think rents never go down. I’m dropping my list price on this particular unit, but it will be up from the departing tenant previous rent. It’s just 20% lower than the current comps. I think the other landlords are smoking crack when they pick their list price and not screening. --24.152.xxx.xx

Rent raise w/ vacant poll (by Sisco [MO]) Posted on: Oct 22, 2024 7:34 AM
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Rents go down in rapidly dying markets…..no bright future there. Oh, and the only way the houses remain habitable is if you can go and perform all repairs and maintenance donating your time.

Get out NE. --149.76.xxx.x

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 7:41 AM
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So jack the prices & hire a property manager and maintenance man for everything, got it. --24.152.xxx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 7:42 AM
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There are some things on this forum that are just a crock of shyt and those 3 are right at the top. --24.152.xxx.xx

Rent raise w/ vacant poll (by Ken [NY]) Posted on: Oct 22, 2024 8:39 AM
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if you sell what will you do with the money to replace the income? would you venture out further to buy rentals or flips? i drive 45 minutes most days to where my houses are, today i am only driving half hour to the current flip house but generally 45 minutes --104.131.xxx.xxx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 8:47 AM
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That’s another reason I am hesitant to sell. What do you do with the money? There aren’t any houses to buy for the first time homebuyer market and how long will the second and third homebuyer market last? I learned my lesson on that in 2008 flipping a higher end home and the bottom fell out of the market. About $100,000 disappeared overnight. And we took a loss on that property. Maybe I should’ve raised the price to get it to sell? --174.249.xx.xxx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 8:48 AM
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If I were to sell now, all I would do would be payoff properties that still have mortgages. --174.249.xx.xxx

Rent raise w/ vacant poll (by MikeA [TX]) Posted on: Oct 22, 2024 9:10 AM
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"I think the other landlords are smoking crack when they pick their list price and not screening."

It was like that here for about 6-8 months on the tail end of the pandemic. I assumed it was a bunch of newbie investors that priced their rents based on what they paid for them. It didn't last long, they either sold or are negatively cash flowing after they lowered their rents back in line with the market. During that time I saw a wider gap in prices than normal so not every landlord jumped on the bandwagon. --209.205.xxx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 9:25 AM
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Mike, I think it’s still going on here. When I say that I drop my rent 20%. That is 20% below what I see other people listing their prices for on average.. My one vacancy today that I just dropped because it was due is now officially 20% below fairytale market comps. It’s at $720 a month. But the tenant that just left two months ago was paying 605. Very rarely do I drop rent below with the previous tenant was paying. But I almost always drop them below. What the average market says they wish they would get for their units in fairytale land. Just because banks are loaning high interest money to people that I would disqualify for rentals on overprice houses, doesn’t mean that qualified tenants are renting overpriced rentals. --174.249.xx.xxx

Rent raise w/ vacant poll (by 6x6 [TN]) Posted on: Oct 22, 2024 11:23 AM
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Rents are dropping here now. --73.108.xxx.xxx

Rent raise w/ vacant poll (by zero [IN]) Posted on: Oct 22, 2024 11:48 AM
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I don't understand how you can be so far below market in your area and still not fill places.

Are all the comps getting the scum that you won't touch? I would never suggest dropping your requirements, but even if they are taking the scum and cycling thru them monthly why doesn't someone give you a shot?

Are the higher places staying open? Are they comparing to STRs? I know there is some of that going on here with the mid term market.

Too much below market would make me hesitant on even applying. Not knowing the area at all I would think you had a slum.

Hopefully something happens to help turn your area around.

I got lucky on my last empty. Started online before it was vacant. Sorted thru the low end applicants and decided on a good one. Took possession yesterday, checked it out in the morning. Changed a fan, a light bulb and mopped a couple spots of floor. Lockbox tour last night and she took it.

Meet in person this evening to finalize with rent and deposit. I actually bumped the rent $50 more. --107.147.xx.xx

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 12:04 PM
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Am I that much under the market or are they that much above reality? When I fill them with qualified tenants, that’s where the rubber meets the road. --174.249.xx.xxx

Rent raise w/ vacant poll (by Sisco [MO]) Posted on: Oct 22, 2024 3:09 PM
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Why hold a loser? No one ever moves to your town, the only way to get renters is to cut rents and hopefully poach a renter from across town. How many vacancies until your rent is $100 per month?

The goal is to make money? Right? Given the market conditions that you have described, when will rental housing profit? How? --149.76.xxx.x

Rent raise w/ vacant poll (by NE [PA]) Posted on: Oct 22, 2024 3:16 PM
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Who said it doesn’t profit? --174.240.xxx.xxx

Rent raise w/ vacant poll (by Ray-N-Pa [PA]) Posted on: Oct 23, 2024 6:37 AM
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Can you sell to another investor a package of places that are performing marginally? --24.101.xxx.xxx

Rent raise w/ vacant poll (by zero [IN]) Posted on: Oct 23, 2024 11:22 AM
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Are your competitors filling their places with lasting tenants?

That's the biggest question I would have. --138.199.xx.xxx

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