Monthly Rental Increase Strategies
Hey all, had a question that's been nagging me and wanted to get some thoughts.
I'd like to hear how investors increase monthly rents (residential) to their tenants. Do you have a percentage increase every year built into the lease? Just raise it a certain dollar amount every other year? Only raise it when a tenant leaves and a new tenant is on the way? Do you have renter's pay the water/sewer bill?
I have 4 rental props but I never quite figured out a good system for raising the rent.
Thanks in advance!
Most Popular Reply
Chad, in regard to the water/sewer bill, I pay it for my rentals, because where I live, duplexes are not separately metered. In the lease, I cap the usage rate at 10 cubic feet per household or 20 cubic feet for the building. That averages to 5 cubic feet per person, per quarter. Anything over that and the tenants will be billed, per the terms of their lease. This also discourages tenants from moving in people not on the lease and from having guests spend the night excessively. The excessive water use would be a dead give away that there are extra people living there which would violate the terms of their lease.
Hope that helps.