Updated about 5 years ago on . Most recent reply
Rent increase question(s)
Good day everyone!
Property details:
- B class property. In very good condition. In an A class neighborhood. However, it was built about 40 years ago.
- Its 3/2 currently rents for $1000 p/m
- Its 2/2 currently rents for $800 p/m
- Its 1/1 currently rents for $600 p/m
Some of the cap x tentatively planed are: upgrading the apartments with modern technology ( inclusive of appliances), making the property 100% gated, adding 24 hr security.
My questions are:
- is it realistic to target an increase of at least 50% in rent?
- what is the highest rent increase % wise that you have seen in a B class?
Thank you.
God bless you all.
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#2 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#2 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Darin A. Scavella Jr, what is the market charging for these upgrades? Typically, I would say if the property is already in good condition, adding gates and new appliances is not going to get a 50% rent bump, but it is totally dependent on market.
I would ask a realtor that focuses on leasing or a property manager, what they are seeing and what rents they can get at properties with these amenities.