How much are you raising your rents?

[Erin Dorsey Robinson]

Hello All- It's been all over the news that rents are skyrocketing although the trend seems to be cooling off in some places. Are you raising rents on your tenants? If so, how much have you gone up and what has been the result?  Are they staying or are you seeing some turnover starting to happen. Just curious what individual experiences have been with this.

[Caleb Brown]

Here in KC we are seeing around 10% rise in rents compared to last year(some areas higher other lower). Depending on how low we'd raise it $50-$100 if they are closer to market rents. The other side of things if you have a solid tenant and want to keep them you could keep it slightly under market. Personally I'd try to keep it close to market rent to protect yourself, at the end of the day it's a business 

[Jason Maguire]

I'm in upstate NY and our tenants' lease on our duplex just ended beginning of July. We raised the rent from $848, to $920 and they had zero trouble with it.

Other investors' in my area have kind of said the same thing. It also seems like there are 6+ month waiting lists to get into modern, resort style apartments around here so tenants may be out of luck if they take a gamble leaving, which i think is playing in us (Landlord's favor) as of now as they don't have as much bargaining power.

[Bill Brandt]

20-35%.

$1850-2250, $1450-$1700, and $1395 to $1900. First was a 1 year lease, 2nd two were 2 year leases. 

They all renewed within 2-3 days. I could probably have raised them more but these were all “good” tenants. 

[Christian Ehlers]

In my area anything updated is getting multiple rental applications pretty quickly, I'm sure this will continue until we near the holiday season even as landlords keep increasing the rents. I've seen 2 bedrooms jump from $1500 to $1900 over the past year/two depending on the area. A lot of towns even more than that. In an area with high demand I would keep raising the rents to market rent, maybe slightly lower if you want to keep a great tenant. 

[Theresa Harris]

I have some in an area with rent control and we could only increase them 1%.  Another area without rent control, about 9%.  No turnover.

[JD Martin]

I'm generally pretty lazy on raising rent for existing tenants, but when they move we reset to market rates whatever they are. So I have had 6 properties turn in the last 6 months - 2 2brs and 4 3brs. The 2brs increased by $300/month and the 3brs varied - one increased by $300, one by $500, and the other two by $400. 

[Nicholas Salman]

I’m here in a suburb just outside of Cleveland, OH. I raised my rent $100 and someone jumped on it. It wasn’t too much because my rent was already $100 above market due to it being turn key in a hot market! 

[Steven Foster Wilson]

Quote from @Erin Dorsey Robinson:

Hello All- It's been all over the news that rents are skyrocketing although the trend seems to be cooling off in some places. Are you raising rents on your tenants? If so, how much have you gone up and what has been the result?  Are they staying or are you seeing some turnover starting to happen. Just curious what individual experiences have been with this.

 I do raise the rents. One of my best properties I got here in Columbus Ohio was for $35,000 the tenant was paying $400, I raised it to $800 and they were very nice about it. They said they knew it was a matter of time for the rent to go up and they were happy for how cheap they had it for all the years before. I think people are not as willing to pack up everything and move. 

[Remington Lyman]

Quote from @Steven Foster Wilson:

Quote from @Erin Dorsey Robinson:

Hello All- It's been all over the news that rents are skyrocketing although the trend seems to be cooling off in some places. Are you raising rents on your tenants? If so, how much have you gone up and what has been the result?  Are they staying or are you seeing some turnover starting to happen. Just curious what individual experiences have been with this.

 I do raise the rents. One of my best properties I got here in Columbus Ohio was for $35,000 the tenant was paying $400, I raised it to $800 and they were very nice about it. They said they knew it was a matter of time for the rent to go up and they were happy for how cheap they had it for all the years before. I think people are not as willing to pack up everything and move. 

 I once raised one tenant from $300 to $1,100 when I bought a 4 unit. He cursed me out of the apartment. Then he stayed for 2 more years.

[Tim Miller]

In Hagerstown, MD we are raising rents between $25 to $100. For our current tenants that we want to keep, we are keeping their rents about $50 to $100 below current market. Half of our units have been upgraded within the last 3 years. We're pushing $1,400 a month for a 2 bdrm and almost $1,000 for a 1 bdrm.

[Chad Hoffmann]

Here in Miami its gone up , one property was at $2700 now getting $4000, another one was $3200 now getting $4900 that almost a 55% increase but with new tenants not existing ones .

[Erin Dorsey Robinson]

Quote from @Bill Brandt:

20-35%.

$1850-2250, $1450-$1700, and $1395 to $1900. First was a 1 year lease, 2nd two were 2 year leases. 

They all renewed within 2-3 days. I could probably have raised them more but these were all “good” tenants. 

 Whoa! That's a big jump. But this is happening all over I guess. I'm guessing you have pretty nice places if people were willing to stay and pay that much more. Quality definitely matters.

[Erin Dorsey Robinson]

Quote from @Chad Hoffmann:

Here in Miami its gone up , one property was at $2700 now getting $4000, another one was $3200 now getting $4900 that almost a 55% increase but with new tenants not existing ones .

 That makes sense. Miami is a whole different situation with the rents. We are definitely spoiled here in Cleveland with the cost of living. 

[Erin Dorsey Robinson]

Quote from @Remington Lyman:

Quote from @Steven Foster Wilson:

Quote from @Erin Dorsey Robinson:

Hello All- It's been all over the news that rents are skyrocketing although the trend seems to be cooling off in some places. Are you raising rents on your tenants? If so, how much have you gone up and what has been the result?  Are they staying or are you seeing some turnover starting to happen. Just curious what individual experiences have been with this.

 I do raise the rents. One of my best properties I got here in Columbus Ohio was for $35,000 the tenant was paying $400, I raised it to $800 and they were very nice about it. They said they knew it was a matter of time for the rent to go up and they were happy for how cheap they had it for all the years before. I think people are not as willing to pack up everything and move. 

 I once raised one tenant from $300 to $1,100 when I bought a 4 unit. He cursed me out of the apartment. Then he stayed for 2 more years.

People know when they are getting over. Nobody seriously expects $3-400 in rent to last forever. I'm sure that guy took some time to see what else he could find and figured it wasn't worth uprooting his whole life to save $50/month and move somewhere else just to spite you lol!

[Erin Dorsey Robinson]

Quote from @Tim Miller:

In Hagerstown, MD we are raising rents between $25 to $100. For our current tenants that we want to keep, we are keeping their rents about $50 to $100 below current market. Half of our units have been upgraded within the last 3 years. We're pushing $1,400 a month for a 2 bdrm and almost $1,000 for a 1 bdrm.

 We have some great tenants as well. These answers are interesting as we are mulling over increases in the next couple of months. We take a similar approach with the folks we want to keep. We've found that if we are about $50-100 under market they stay for years. Have you found that the number of applications you are getting for the 2 bedrooms has changed as the price has gone up?

[Bruno Smith]

@Tim Miller

Is Hagerstown a good place to buy right now?

[Tim Miller]

Quote from @Erin Dorsey Robinson:

Quote from @Tim Miller:

In Hagerstown, MD we are raising rents between $25 to $100. For our current tenants that we want to keep, we are keeping their rents about $50 to $100 below current market. Half of our units have been upgraded within the last 3 years. We're pushing $1,400 a month for a 2 bdrm and almost $1,000 for a 1 bdrm.

 We have some great tenants as well. These answers are interesting as we are mulling over increases in the next couple of months. We take a similar approach with the folks we want to keep. We've found that if we are about $50-100 under market they stay for years. Have you found that the number of applications you are getting for the 2 bedrooms has changed as the price has gone up?

 No, but Hagerstown market is HOT right now. We schedule 10 showings for a Saturday & Sunday, last minute cancels and I have the time slots filled same day. We almost always have a qualified tenant the very first weekend.

[Tim Miller]

Quote from @Bruno Smith:

@Tim Miller

Is Hagerstown a good place to buy right now?

What is currently on the market is over priced! Most of the properties have years of deferred maintenance that kill the numbers. Unless you're a 100% cash buyer, or you can find an off market deal. Most multi-family property will not work for you.

[Matt Bishop]

@Steven Wilson, those are great multiples.

[Rodger Curbelo]

Quote from @Remington Lyman:

Quote from @Steven Foster Wilson:

Quote from @Erin Dorsey Robinson:

Hello All- It's been all over the news that rents are skyrocketing although the trend seems to be cooling off in some places. Are you raising rents on your tenants? If so, how much have you gone up and what has been the result?  Are they staying or are you seeing some turnover starting to happen. Just curious what individual experiences have been with this.

 I do raise the rents. One of my best properties I got here in Columbus Ohio was for $35,000 the tenant was paying $400, I raised it to $800 and they were very nice about it. They said they knew it was a matter of time for the rent to go up and they were happy for how cheap they had it for all the years before. I think people are not as willing to pack up everything and move. 

 I once raised one tenant from $300 to $1,100 when I bought a 4 unit. He cursed me out of the apartment. Then he stayed for 2 more years.

 That’s actually sad

[Eric Bilderback]

Going about 10%.  Apartments have adj interest rates in the future.  Don’t want to play catch up, tenants have to pay I’m afraid.  Bad spot for tenants hopefully they can keep affording to pay more for all of our sakes.

[Curtis Mears]

@Erin Dorsey Robinson

I raise my rents every year (except 2020). Normally only 25 to 50 per year, but now I am increasing by 100. Some of my properties could be upped even more, but I choose to limit the amount, but raise it every year.

[Henry Lazerow]

I increased all my 4 unit in edgewater rents about 7% this year. Some areas like Avondale, Albany Park nearby me wen't up more and clients got to raise 15%, etc. It all depends on the area you are in. Run some comps using Hotpads to see how high you can get within a 1 mile radius if in a city or just for that side of town if a small town. 

[Steven Foster Wilson]

Quote from @Matt Bishop:

@Steven Wilson, those are great multiples.

 Thanks Matt! I have done more too not as good as that home run but still great deals. Let me know if you in on some

[Chris Levarek]

To market of course! Which depends on the market :) We always do value-add projects so typically we take the rents up in increments over 1-2 years of renovations to comparable market rents. Add value, increase rents. More value added, allows for increased rents over market.

A property however in Phoenix, AZ for example which has seen 30%+ rent growth since 2020 will have a very different rent growth strategy then say one in San Francisco which has seen a -1% rent growth since 2020. 

Over the past 6 months however, cities like San Jose, New York, Boston, Seattle have seen 8% rent growth while, Phoenix, Las Vegas, Atlanta have seen 1-3%. So it's all dependent on where your property sits in what market and have you baked in those rent growth numbers since 2020 or are you just raising now...