Should you raise the rent on good tenants?

Question

I have many of my properties under rented thanks to the incredible Colorado market. It makes me wonder if I should raise rents on them or not. So I wrote an article on the pros and cons or both sides. http://investfourmore.com/2015/07/should-you-raise...

Bill S. · Answer

@Mark Ferguson I wrote a blog post on this very topic. Automatic Rent Increases it goes along with my post on Automatic Lease Renewals.

Unless you are in a dead flat market then you are remiss to not increase rents automatically and annually. Our market here in Denver has increase about 10% per year for the past two years. As I stated in the blog post, I don't go for the whole 10% but I don't do zero either. I have built in rent increases. I still get more on renewals but I leave lots less on the table and since it's built in, there is no uncomfortable discussion or the pleading, "I can't afford it." Tenants know what's coming and how much. I've had great success with this approach

Mark Ferguson · Answer

@Bill S.

That is a great strategy to build increases into the lease.

Should you raise the rent on good tenants?

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