Inflation and rent raise

[Maria G.]

Hello,

I was wondering how other investors are dealing with the inflation in terms of passing it on to their new leases? With an 11% of rental inflation rate in California, I feel it's too much to pass it on to my tenants (the maximum allowed is 10% anyway). On the other hand, I do get the effects of it... How are others dealing with it?

Does anyone know of a reliable source of rental inflation rate per city or county?

Thanks.

[Patricia Steiner]

You're running a business...not subsidizing the housing market.  The best way to price your properties that reflect the actual value is to the market - not to inflation.  So if you're tenants were to move out at lease end, what would the market rent be for a comparable property in your market?  By letting the market set the price, you avoid grand debates, Fair Housing threats, and more.  Again, you're running a business so let the market - based on supply and demand - set your rent.  Hope this helps...