Rent Increase
Can someone tell what is a standard amount, if any to increase the rent by ? I believe the only time i can lelally raise the rent is when theold lease is expiring and before renewing the new lease, is this correct ? I would like my tenants to reimburse me for the water, sewer, association fees and any increases to the monthly mortgage payments. Some rents would be increased between $90.00 and $100.00 more a month. Is this to much ? I believe this could create a hardship for some of my tenants and i thought i could spread these increases over a two year period instead of one, and introduce a 5% automatic increase written into the lease that would start in 2006 or 2007. Iam looking for a win win situation. Can someone help me, how would some of you veteran investors handle this ? We have been investors three and a half years, and this is our first time raising the rents.
[ Edited by jerre19 on Date 02/22/2005 ]
first! I think you should raise rent incremently every year (if it is a yearly lease) every thing goes up (inflation)
as for your dilema with increasing rent by a huge sum. I would caution you.
consider these things first
if I increase rents significantly am I still competitve?
are my tenents going to stay ( if they move and you have a month of vacancy your increase is mitigated)
maybe you want to increase rent moderately but increase it every year!!!