When Increasing The Rent Yearly, How Much Do You Increase?

Do you gage by neighborhood or is there you go by a set percentage?

quinn

Comments(10)

  • kenmax29th June, 2004

    by what the surrounding neighborhood will bare. calling other rentals in the area is a good gage. if you check enough locals you will have a good idea of what the market in your area will bare. %'s does not reflect higher or lower income areas or "extras" like pools, bad or good neighborhoods, how close to malls ect...kenmax

  • ahmedmu29th June, 2004

    I bought a property with a Section 8 tenant paying 850. Others were paying 700-750. I raised all those to 800. Some of them complained. Similar apartments are renting for 900-1100 but I don't want to shock rent-paying tenants who have been there for years. I have positive cash flow with the rents I charge.

  • tclifford1029th June, 2004

    Good Day to you: Most of my rentals are the top of the line for the neighborhood and I charge accordingly. I routinely do general maintenance to each of my properties which shows a preceived value to my Tenants. When I buy a new property I always call the competition and then set my rent at about 10 - 15% higher. Put out a sign or ad in the local paper (AFTER it is rehabbed) and start taking applications. I very rarely have a property stay vacant for more than a week after it is rent ready. I then raise my rents every other year by 10 - 15% and have never lost a Tenant yet.

    Good Luck and make $$$

    Tom

  • alexlev30th June, 2004

    Definitely go by the market. And make sure you understand your place in that market. Calling the competition is a great idea, but I suggest that you get out and take a look at what the competition is offering.

    I charge near the top of the market, have a very low turnover rate, and have never had an apartment stay empty for longer then a month. Why? because I take care of my properties. If you're this way, don't be afraid to ask for a fair rent. Rentals right next door to my properties charge less by as much as $50 per month, but they stay empty for months at a time. A few more months and I'll be talking with the owners about buying the properties they can't seem to manage right.

  • ahmedmu30th June, 2004

    Good property under good management seems to be the key here. They will take care of you if you take care of them.

    Thanks.

  • ahmedmu1st July, 2004

    Tom,

    How do you find your tenants?Do you advertize in the newspaper? Do you use any property management company?

    Thanks.

  • mattfish111st July, 2004

    I have heard of investors doing a little research and coming up with an "average" inflation rate and increasing it by that much! I intend to raise my rentals in the fall by 3% (I found an article of interest rates for NJ)... This will bring a $700 rent to $721. This is a decent increase - but will put me more in range with the current market rates.

    Good Luck!
    [addsig]

  • ahmedmu1st July, 2004

    You have to consider the increase in taxes and sewer bills, etc. I met a guy who gives only 6-month leases so that he can pass on the increases in his bills

  • ahmedmu1st July, 2004

    I don't know about other states, but they are raising property taxes like a kid in a candy store in CT, both assessment and mill rates.

  • cjmazur1st July, 2004

    make sure locallaws don't cap the amount you can increase the rent.

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