Raising rents in Texas?

Question

Are you raising rents?  If so, what percentage % ?

Single family, long term rentals. We have ok tenants who don’t complain much. They do accumulate trash, old tires on the property. Units re-lease in 10 days or less if needed, but I don’t like the hassle and spend when turning over tenants.

Nathan Gesner · Answer

You shouldn't raise rents based on a percentage or what others are doing. You should evaluate the market regularly and increase your rents to remain at - or close to - market rate for your rental.

Eliott Elias · Answer

I keep my rents a little bit under market. I want tenants who are going to occupy the property for as long as possible, with the least incentive to leave as possible. The only way to do that is by keeping rents under market value.

Nathan Gesner · Answer

I would also be careful with keeping marginal tenants long-term. A tenant that starts off marginal is only going to get worse over time. If they are storing tires on the property today, in a couple years it may be 16 tires, an old pickup topper with broken windows, a rusted out BBQ, a yard full of dog feces, a couple buckets full of engine oil . . . you get the point.

Gustavo Delgado · Answer

as long as they are not much of a hassle, raise the rent around 3%. It may be better for a small increase as opposed to having them vacate, have to make it ready and the time to find a new tenant.

David Lopez · Answer

I always check to see what the comparable houses are in the area especially in the same tract. The top price is always the prefect house. Check to see how your property compares then start to adjust your price.  I know it is not perfect but, Zillow is pretty darn close. Then,  how long has your tenant been in place? did you raise your rent last year? how much? Keep your tenants knowing that rents go with inflation and rise every year. Just like everything else. 3 to 5 % per year is a standard. Your property tax & insurance went way up this year right? Who is going to cover the increase? you?

To end,  I did have one tenant this year who is going through a divorce and the whole family moved out except for the mother. during the yearly inspection i saw pictures of full moving boxes and putty on the walls to fill some small picture frame holes. ok,, i said to myself she is leaving get ready to take a hit with a turnover. There was no notice given to vacate. I ask my property manager to offer the SAME rent for a one year lease. She took it and i am good for another year. 2400 sqft for one person? It must fell like home in a tuff year. I have one year now to see if next year I will loose her with a rent increase. My point is EVERY situation is different and only know what your BIGGER POCKETS budget can handle.

Edward Adams · Answer

on every renewal i will do a Comparative Market Analysis (CMA) and make decision base on that.

Jay Thomas · Answer

Deciding whether to raise rents is a case-by-case decision for landlords. Factors like market conditions, property condition, and tenant quality matter. Houston's rental market is generally strong with rising rents, though some signs suggest a slight cooling. Research local market rates and assess your property's condition and tenant quality.

Melanie Thomas · Answer

More along the lines of the above. We do CMA's vs a % based increase. However, we always increase and never decrease. Good luck & happy investing!

Malek Bohsali · Answer

Totally understand that - it’s gut wrenching to get the text message- “Hey your tenants dropped off the keys and left town!  What do you want us to do with them?”  Tenants of course threw away their old cell phone numbers, no forwarding address, etc. It’s balanced with their deposit (1 month here) and super quick RE-lease turnaround.

Raising rents in Texas?

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