We try to do a 10-15 increase every lease renewal. If you don't increase the rents, your not saving yourself any money.
Generally, we like to be able to have leases run around 3-5 years. If it is shorter, your hurting yourself because you don't make enough money coming in. If it is longer, you can't do the neccessary repairs, and keep up with the rent rates.
Sometimes rent rates, are faster than 3%, but you may not be able to have a 3% rental increase. That is when a 3-5 year re-rent will allow you to start over and find what the new market rate is.
When having just purchased a property, I've increased rents as much $85 p/m.
As for existing tenants, I don't look to do an automatic increase every year. Instead I look at the market and raise rents accordingly. Since I take pretty good care of my properties, I've never had anyone leave because of the rent increase.
If a tenant ever becomes a problem, I could see myself increasing their rent to a point where they would move out. But I've got pretty harsh late payment and other penalties. So that keeps the tenants pretty much in line.
With my multi-family properties I try to raise the rents $10.00-$25.00 per month. On my nicer properties I like to raise the rents a minimum of $100.00 per month.
We try to do a 10-15 increase every lease renewal. If you don't increase the rents, your not saving yourself any money.
Generally, we like to be able to have leases run around 3-5 years. If it is shorter, your hurting yourself because you don't make enough money coming in. If it is longer, you can't do the neccessary repairs, and keep up with the rent rates.
Sometimes rent rates, are faster than 3%, but you may not be able to have a 3% rental increase. That is when a 3-5 year re-rent will allow you to start over and find what the new market rate is.
When having just purchased a property, I've increased rents as much $85 p/m.
As for existing tenants, I don't look to do an automatic increase every year. Instead I look at the market and raise rents accordingly. Since I take pretty good care of my properties, I've never had anyone leave because of the rent increase.
If a tenant ever becomes a problem, I could see myself increasing their rent to a point where they would move out. But I've got pretty harsh late payment and other penalties. So that keeps the tenants pretty much in line.
Good luck.
With my multi-family properties I try to raise the rents $10.00-$25.00 per month. On my nicer properties I like to raise the rents a minimum of $100.00 per month.