When is the right time to raise rent?

Question

hi all,

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?

Clint Bolton · Answer

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.

Clint

Christopher Winkler · Answer

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...