I'm just curious, for all landlords out there, how do you manage your rentals? do you raise rent? why or why not? Friend of mine who has been a landlord for over 15 yrs suggested if the tenant is good, do not raise rent, maybe after 4 years, if you want to get rid of them, then raise it.
What do you guys think?
Hey Franky, for me, it usually depends on the rental market rates. I usually raise rental rates at lease renewal if I decide to raise the rent. Unless I'm severely under market rent I'll let them stay for a couple of years at the initial rate and then if rental rates have increased in the market I will let them know at least 30-60 days before lease renewal that the rate is increasing and I inform them of what it will be if they choose to stay. I've never had a tenant leave when I've raised rates because once they start looking around at other available properties they realize they can't get a better property for the same money... That's my method. Hope that helps.
Hey Franky, while I have been focusing on notes, we do get REOs that have renters in them. Plus me renting for years, I suggest you find the local rents on Rentometer.com or Hotpads. com and find a local average and hit that. If its over $100, break it to them gently, though there is nothing wrong with $100 every couple years, or $50 a year...