Are you keeping up with the market?

[Nathan Gesner]

A study by Corelogic reveals rent rates for single-family homes was up 11% from 2020 to 2021. Cities like Phoenix, Austin, San Diego, Orlando, and Las Vegas saw rates increase over 15% last year.

If you rented a house for $1,500 two years ago and then didn't increase the rent for the past two years, you would be about 15% behind market. That's $2,700 in lost income. As sales prices continue to spiral up, you can expect rent rates to continue climbing until they eventually catch back up. This could take a couple years.

Are you keeping up?

P.S. More and more Cities and States are looking at regulating rent increases and when you can terminate a lease. If you get too far behind and regulations lock you in, you may not be able to catch back up until the tenant leaves.

[Karl B.]

I told my mom I would be raising rents on a small portfolio of properties I bought in November and she said to me, "What if they all move out?"

I replied, "I wish. Then I can raise rents to market right off the bat."