Annual Rent Increase

[Gerald Marshall]

Does anyone initiate the "Annual Rent Increase" in their lease contracts, where you use a percentage factor to increase your rents on an annual basis, even if you have some one sign a multi-year lease.

[Marco G.]

Gerald Marshall you have to implement annual rent increases. I don't like to tie my hands with a set percentage in the lease, unless you have a multi year lease.

Your insurer isn't going to keep your rates the same just to keep you, especially when they know what everyone else is charging. Same is true for your plumber, etc.

Check out what rents are for comps in your neighborhood and try to stay competitive. Your tenants may be staying because they have such a deal. You can have incremental increases and still stay competitive.