A few years back, tenants in one building complained they couldn't afford a rent increase. At that time under our Rent Control, I was limited with only a 4% annual increase. So I just let things go, not raising anyone in that property -- 15 units.

I noticed several tenants purchased a new car, or big screen time, or even a new fast computer. Their story was just fiction.

All of my units were 2 Bedrooms with 1 parking spot, average rent was $950/mo. The going rate for a 2+1 was $1,400.

So I had my neighbor/owner next door place a For Rent Sign on the middle of his front lawn. "Two Bedroom, New Appliances, Basic Cable Included with 1 parking spot, $1,100". He had an answering machine saying, "Out on vacation, will return in 1 week"!

SO I handed my 15 tenants a rent increase, of only 4%. From $950 to $988/month. My tenant talked between themselves and told me if I raise their rent, then they would move.

I said, "You can't move, you hadn't given me my 30 day written notice"! They all handed me a notice, thinking I would back down.

SO I quickly rented out the 15 units, thru a service, new tenancy to start in 30 days.

I've been through this with the County property tax assessor, and the property insurance companies.

They are MERCILESS. My county already charges twice the property tax for anything rented out over homeowners, and can raise property taxes twice in one year!

I've also seen property insurance rates for rented property double on people.

So no, never raising rent and going bankrupt is not an option.

Good on you J!

I am sure that Jeffrey is proud of you for the courage to do your job.

I have yet to get any pushback from my meager 3% increases. Had one long term tenant mention something to another tenant. But she told him she was paying more than he was so he calmed down before it got to me.

It has been decided that if a tenant pushes back on the increase they are no longer being cooperative and I will ask them to leave.

We are a little under market for places that are close to what we provide in the same town. We don't get the big dollar amounts that most here on the board do, but we have less costs I guess.

I rented the last three apartments out before they were done. Third one signed the lease today and will get keys on Thursday. Have another that is being worked on but is rented out as soon as I am done.

Maybe I am doing it wrong. I keep the places filled with decent people. My move outs are from buying houses, getting married and the like. Nobody moving out because they hate the place or me for that matter.

I cashflow on each place I rent.

Thank you for updating us. I am glad you got solid results and more importantly overcame fear - which causes so many folks to freeze in place. Freezing in place is absolutely acceptable as long all other expenses also freeze in place. I have never seen that ever happen yet but I suppose in a deflationary period it could as it last did in the 1930's.

More importantly, you are providing a shining role model for others who might not have elected to speak up yet to look again at their business practices.

You GO J!

Your convention comment about courage years ago gave ME the courage to do increases.

I also made a simple spreadsheet on one occupied home showing the rent each month in one column and what it SHOULD have been with normal yearly increases over a 5 year period.

The missing $20-30 increases added up to a THOUSAND$$$! on just that one home.

I signed checks to State Farm yesterday. The bookkeeper was AMAZED at how much each house went up.

I went to buy a (formerly) $10 item at Lowes today. Current price $23.

Renters EXPECT rents to rise.

Timid LLs raise skinny kids!

BRAD

We are supposed to meet with our SF agent next week.