How to Successfully Raise Rent as a Landlord Legally
When it comes to rent, it’s been quite high as of late. When new rental housing comes up, the idea of renting has become a big topic. There are many booms and crashes in this, which is good for landlords, since higher rents mean better income and property value. If you’re a landlord that hasn’t raised rents on rentals in a while, it might be best to think about it, and you should. At the least, consider it, since the new conditions are much more favorable.
It might seem wrong to raise the rent though, and it might seem easy but it’s actually a bit hard. There are pros and cons to this, and some good and bad ways to do it. If you are considering this, continue reading on to find out how you can raise the rent as a landlord.
First, you got to assess your market and see if you can raise the rent. The markets are local, and while some might be higher than others, some may be barely climbing up from a decline that’s there. You need to do market research and see what other landlords are charging at this time. Most of the time, you’re probably doing this, but you should check rental ads and talk with landlords and from there find out if they’re above or below market, and you can then choose.
Now, finding out doesn’t mean you can instantly raise them, and you can’t raise it for a specified amount of time. You need to wait until the period of time of the lease is over, so that if you renew, you can discuss raising it.
You also need to understand the local laws. There are laws against and for raising rent. You need to understand this, since what might be legal in one place, isn’t legal in another. You also need to think about the notices, and how they’re delivered, you should also take a look at how much you can increase the rent, and from there, figure out if it’s worth it.
Now, this is another hurdle to cross. Some tenants will accept the increased rent, but others might decide to move when you propose it. How many move is really dependent upon the increase of rent, but if you have a tenant turnover, you’ll have to pay for this. You will lose the income when the property is vacant, and you’ll be spending more money trying to find tenants that will pay the rent in this place. You also need to prepare the property for this.
Will these expenses be worth increasing the rent. You need to think about that, and you need to think about the turnover process. Sometimes it’s better to just give it up after a bit.
There are a few things that you can make sure to implement so that you have a smooth rent increase. First thing’s first, is you want to give as much time as possible, such as 60 days being desirable but 30 being the bare minimum. More notice gives the tenant more time to think about this, and gives you time to find a replacement. Also, make sure to sent the rent increases in writing, and make them a part of the lease. You should only increase the rents when the units turnover, so that you don’t upset the current tenants and rock the business. If you do raise rents, you should try to improve the property as well, such as painting, landscaping, ceiling fans and appliances, and even better maintenance. Little improvements will make the renters happier, since it makes them feel like they’re getting something for the increased costs, and making the blow so much better.
When it comes to increasing rent, it’s often something you’ll have to deal with, and something that may become quite shocking for a few tenants, but if you know how to do it, and you create a smooth and easy rent increase for the tenants, and to help you get some money as well. It’s quite easy, and you can achieve this easily with these steps at hand and the actions you take.