Why would you want to prepare them to move? If anything, the fact that they are paying a slightly lo

In our 4 family, the tenant in #2 has been with us almost 4 years. Never a peep, always pays on time with a smile, pleasant, never asks for anything, no noise complaints, no plugged drains, plugged toilets, addresses me as Sir ...a dream tenant.
There is a cost involved with tenants moving, obviously, along with the possibility of being vacant for a few months...but with the response to our recent vacancies, even with the higher rent, I m sure we d rent it in a heartbeat.
I ll never forget los angeles traffic what my Father, los angeles traffic God rest his soul, used to say. People tell me to charge more rent, but my building is always full. It takes a long time to make up an empty month even at a higher rent.
Personally, I wouldn los angeles traffic t raise this tenant s rent. Your most costly expenses are typically going to be vacancy los angeles traffic and turnover. Why risk it? Especially when you have a good, trouble-free los angeles traffic tenant. I like your father s words of wisdom.
Here is my suggestion: it often is better to blame others when dealing with situations in negotiations. In this case, since it appears yo have a good relationship, use someone else as the bad guy here, go talk to your tenant and tell them that over the last 4 years, the insurance company has raided your rates, your taxes have gone up, costs of labor and repairs, etc. in other words, it is not You raising the rent, but the mean old insurance company, government, economy, etc.
Unless you plan to sell or refi in the next 18 months or so, this is of less importance, but do keep in mind that a $40 monthly increase amounts los angeles traffic to $480 a year in added income and at a 10 cap, that equates to a value increase to the property kin the amount of almost $5,000.
While I ve never managed a rental, I am currently renting an apartment in San Francisco. I think you should look at this less in terms of dollar value and more in terms of percentage change. For instance, my rent automatically went up at the expiration of my 12-month lease based upon the CPI which turned out to be $39.21/mo los angeles traffic extra. However, my rent was $2,100 (I know!!) so in terms of percentage increase it was really not much - less than 2%. On the other hand, if your rent is $400/mo. an extra $40 is 10%. Just trying to look at it in a different way.
In this case I may split the difference. los angeles traffic Go to him and say something like Hey, the market is $40 or more than you re paying. We re only increasing los angeles traffic yours $20 since you re such an easy person to work with. Our way of showing our appreciation.
I think you should raise it every few years, even if it s incremental. I d start by raising his rent by $15. 4 years with no increase is a long time unless you were overcharging to begin with. And it doesn t sound like you are. IMO you do a tenant a disservice by not raising rents over time. When a tenant starts looking to move, their rents should los angeles traffic be current market so they are prepared to pay at least that much if they need to rent something else. I can t tell you how many tenants I have inherited that are ill prepared to pay current market rents. Many times they have been good tenants for 10 years or more but have gotten addicted to low rents. los angeles traffic Look at any rent control city and you ll see the same issue
Tenants are clients and deserve good service and good value, but it doesn t make sense for them not to share in the increased costs for landlords. No need to raise it every year, but I wouldn t let it ago another year if it were me.
This is something I have to consider for a renewal coming due this summer. The tenant was in the building 2 years before we bought it, and paid $800/month. When we bought it, we kept the rent at $800/month and have for almost 2 years now. They don t cause any trouble, are really personable, take care of the place, and pay every month.
Originally posted by K. Marie Poe IMO you do a tenant a disservice by not raising rents over time. When a tenant starts looking los angeles traffic to move, their rents should be current market so they are prepared to pay at least that much if they need to rent something los angeles traffic else.
Why would you want to prepare them to move? If anything, the fact that they are paying a slightly lower rent then comparable properties should discourage them from moving. I don t want my tenants to move out.
My mom is a lifetime renter. los angeles traffic She was in her last house for almost 20 years. I think the rent nearly doubled over that time period. Every couple years the landlord would say property taxes have gone up, I need to raise your rent. I guess I m sharing that to show that increased rent won t automatically chase off your great resident. My mom liked the neighborhood, liked the landlord, and didn t want to deal with moving. She wasn t going to go anywhere.
If you are moving it up to fair market value, I don t see what s wrong with it. The tenant shouldn los angeles traffic t either. If they do, they will soon find out that it s fair market and would hopefully stay. Now if it were me, I would keep it at what it is at. $40 to me is worth it to get a great long term tenant. That in itself is worth $$$ to me.
Here is my suggestion: it often is better to blame others when dealing with situations in negotiations. In this case, since it appears yo have a good relationship, use someone else as the bad guy here, go talk to your tenant and tell them that over the last 4 years, the insurance company has raided your rates, your taxes have gone up, costs of labor and repairs, los angeles traffic etc. in other words, los angeles traffic it is not You raising the rent, but the mean old insurance company, government, economy, etc.
Unless you plan to sell or refi in the next 18 months los angeles traffic or so, this is of less importance, but do keep in mind that a $40 monthly increase amounts to $480 a year in added income and at a 10 cap, that equates to a value increase to the property kin the amount of almost $5,000.
I understand that is a tough question. You could always explain that everyone else is paying more, and maybe split the difference and ask for $20. I have someone asking for a two year lease at this time, and my agent suggeted a potential $50 bump the second year. I am thinking over options, and I am only going to go with a possible $25 the next year. If they turn out like your model tenants, I may let it go at the current rate and be glad I have someone good and that pays on time. That remains to be seen. Ask for $20 and don t run them off. That gives you a little more income so you don t feel like you are going to have them move, and also shows them you appreciate them as a tenant.
Raise it. If your other tenants are renting the other units out at higher rent than the unit is WORTH that. Sure they may be a model tenant, but they could think you re the model landlord. And they re aren t paying above and beyond their rent as a token of appreciation to your superb landlording los angeles traffic skills. If you re rents are obviously below market you re a fool in my opinion, and just not collecting money that is there. The tenant already has incentive not to move if they like the unit, plus the pain of moving, everyone hates packing up all their junk.
Personally I think you want to keep a good tenant, because the cost of cleaning/painting and getting a unit ready for a new tenant has its costs, as well as the possibility of getting a tenant that seems good, but then flakes out on you and you have to wind up evicting.
I also don t think you should leave your rent as-is, because it s perfectly understandable that in life, costs go up. Gas prices go up, food prices los angeles traffic go up, and the tenant has already had 4 years of no cost increases.
But you don t have to raise any rent amount in large chunks. And you always have to provide a nice letter explaining that your expenses have gone up (property tax, insurance, sewer, trash, etc.), and although you try to keep prices reasonable, at some point those added expenses have to be covered. And for a good tenant that will renew a lease for what I consider long term (12 months), I offer them two options: a month-to-month renewal at some bigger increase, and the 12 month renewal with a smaller increase. Except for the ones planning to move, they take the smaller los angeles traffic increase and renew for 12 months. And the ones about to move were going to cause you a vacancy anyway ...