New Landlord - How to Handle Rent Increases
St. Louis, MO · Member since 2017 · 18 posts · 12 votes
New Landlord - How to Handle Rent Increases
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Investor · Atascadero, CA · Member since 2015 · 238 posts · 90 votes
9yAre you planning to write an introductory letter to let them know the ownership has transferred? Maybe you could ease them into it by giving them a heads up in that letter. Introduce yourself as the new owner, say you want to assure them that you are going to honor their leases at the current rate but that the cost of financing and maintaining the building dictates rents be raised to market rates at the end of their leases. You hope they decide to stay on but if not you want to give them plenty of time to make other arrangements to make it as easy as possible on them (long lead time). Maybe even suggest that if anyone needs out of their lease sooner it may be a possibility and to discuss it with you. If anyone does approach you to get out of their lease because they need to jump on another place you could start getting market rate before next spring and your departures would be more staggered.
Just a thought.
Oh and CONGRATULATIONS!!!
27 Replies
- Investor · Spokane, WA · Member since 2017 · 9 posts · 6 votes9yIf you've got great tenants my recommendation would be to shoot for a rent increase that puts you close to, but just below market rents. Particularly if you don't want to deal with turnover. I've dealt with a similar situations where tenants have been below market. If I don't think they are the ideal tenant id probably consider pushing it up to full market, if they leave I'm probably better off finding someone new anyway. If they stick around at least I'm getting full value! For a great tenant hitting them with a huge increase that takes them all the way to full price might be enough to push them out, and the cost of turnover probably isn't worth it. It's always good to talk to tenants too, let them know that you've got a payment to make, and you want rent to be fair both to them and for you. Over a couple of increases you can get it back up to about where you need it to be without the shock of a single massive increase. For me it really depends on how sensitive the tenants are going to be to a rent increase, how bad you want to keep them on, and how easy it will be to get new tenants.
- Chicago, IL · Member since 2017 · 57 posts · 5 votes9yCongrats on your new property though. I'm currently in the search for my first fourplex in Chicago. Planning on using FHA as well.
- Investor · Atascadero, CA · Member since 2015 · 238 posts · 90 votes9y
Are you planning to write an introductory letter to let them know the ownership has transferred? Maybe you could ease them into it by giving them a heads up in that letter. Introduce yourself as the new owner, say you want to assure them that you are going to honor their leases at the current rate but that the cost of financing and maintaining the building dictates rents be raised to market rates at the end of their leases. You hope they decide to stay on but if not you want to give them plenty of time to make other arrangements to make it as easy as possible on them (long lead time). Maybe even suggest that if anyone needs out of their lease sooner it may be a possibility and to discuss it with you. If anyone does approach you to get out of their lease because they need to jump on another place you could start getting market rate before next spring and your departures would be more staggered.
Just a thought.
Oh and CONGRATULATIONS!!!
- Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes9y
@Ronda R. Has excellent tips..
Letter of introduction, with explanation that lease increase will be $$$ range come renewal time and you would be open to 60 day notice and would let them out of lease with that.
- 9yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
@Ronda R. for the win.
A 4-plex under-rented is better than a vacant 4-plex, so long as the tenants are actually paying their lower-than-market rent.
I like the idea of confirming you'll keep their lease through the end of its term (you have to anyway, but if they are not aware of that, perhaps you will look like the good guy) and also confirming that you will be raising the rent when you can.
Be careful not to make it sound like you will automatically be keeping them on if they agree to the rent increase. You can have a pays-on-time tenant who is a massive pain in the backside and not want to keep them on at any price.
$175 is a steep increase at that price point. Plan on mass exodus, and while it would be nice to have them stagger their exits, they will most likely all leave the property.
What is your plan for a tenant that you would like to keep, but who does not meet your criteria? You'll have a good amount of time to get to know them as tenants. Something to consider is what to do if they don't meet the credit score or income requirement, but have always paid on time. Are you going to not renew their lease or grandfather them in?
Also, Make sure you get Tenant Estoppel Statements from each tenant BEFORE closing. This is the tenant verifying what they pay for rent each month, and what they have as a security deposit.
Make sure you get the security deposits transferred to you at closing. Put them in a separate account in accordance with your state laws.
Does the seller have a move-in condition report? If he does not or will not give it to you, do your own walk through after you own the property. You cannot charge the tenants for damage that occurred before you bought it unless you have proof they moved in before the damage took place, ie the move in condition report from the current owner.
- St. Louis, MO · Member since 2017 · 18 posts · 12 votes9y
Thanks everyone for the great responses. Excited and nervous to start officially investing in real estate!
@Ronda R. I'm definitely using your letter outline to officially tell them about the transfer of ownership.
@Mindy Jensen Great points you're making. I'm certainly comfortable with having some vacancies even if they all are at once. As for criteria, the plan is to stick to it strictly even if it could result in a move out.
Main ones being - Minimum 600 Credit Score, Income >= 3x monthly rent, clean background check, no prior evictions. I've been reviewing my copy of Book on Managing Rental Properties which has helped greatly, but let me know if there are any other criteria you recommend.
Also, move out checklist! Definitely going to be grabbing one of those prior to the lease termination.
@Angel Lowe Love the personal anecdote. Reminds me of one of the BP podcasts where the interviewee focused on what the tenant is getting from the landlord for the rent increase. Actively looking to improve the property certainly comes to mind. I would think asking them top 3 wishlist items that would help improve their experience living there could help. Not making any promises upfront, but at least getting their input. Thoughts?
At this point, I've decided I'm going to be upfront with the rent increases. Letting them know I intend the bring the rent closer to the market rate and encouraging them to reapply as their lease period comes to an end.
- Real Estate Agent · Newport Beach, CA · Member since 2017 · 259 posts · 293 votes9y
My fear about being up front about the rent increase is that they will take their time to find the right new opportunity and move out at their convenience.
Stick to the introductory letter especially explaining where you expect them to be paying rent and maybe even ask if there is any deferred maintenance on the property that they feel like should be addressed. The latter of the two might especially provide some insight as to which tenants are a pain versus which tenants are great. I have one tenant in particular who likes to be the squeaky wheel and the amount of time she demands from me is reflected in her rent increases.
I'd be more inclined to send the introductory letter letting them know that you look forward to a wonderful working relationship and that you want to bring things up to snuff. With some notice. I might be inclined to allude/tell them about your rent increase at the end of winter that way you appear kind. I would also consider a flat 10% increase which only requires a 30 day notice in the state of California. Doing so gives you a fully occupied property with the opportunity to stay occupied because a 10% bump is only a little painful and more than likely won't cause them to move. If they do move, you have the opportunity to fix up the units where tenants move.
I might also consider staggering the leases if all the units are identical. Tough to go from 60 to 0. You could leave one on month to month. Leave two on the same schedule and bump back the fourth. It also might behoove you to talk to the tenants after you suggest a rent increase. They might stagger their leases for you based on their ability to find their next spot if they move.
- Member since 2016 · 13k+ posts · 12k+ votes9y
Tell them nothing specific in advance other than you will be raising the rent at lease renewal.
Send notice as required by the state. If you are operating as a hobby the decision regarding how much to raise the rent is not very important. If you are operating a business raise the rents to market, $700, and clean house if necessary. Hobby landlords usually avoid doing work and prefer to charge under market to hopefully not have to do any.
If you are operating a business there is no point in subsidising your tenants below market rent. Is usually best to get rid of inherited tenants and get new ones that are happy with paying market. Inherited tenants are never happy with change.
- Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes9y
@Sam Levine I normally advocate to keep long term tenants, but their rent is extremely under market in this case. Don't be afraid of everyone jumping ship, if you can rent the units as they exist for $175/mo more, not doing so is the same as giving them 4 months free rent per year. I'd approach them now and see if anyone is interesting in receiving a return of their August rent if they vacate by September 1. That's 1 month free, then maybe you have a month to turn over and re-rent, so you're at 2 months w/o revenue. Sure beats giving away 4 months.
- 9yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
Lots of good advice above. I'd agree that you shouldn't be afraid of vacancy, especially If your rents are that far below market. Are the units all in great shape? You might let them know that you are planning on making some capital investments in the property ("You get a fridge, and YOU get a fridge, everybody gets a fridge"), and that those improvements and your great service will continue indefinitely, but those types of improvements cost money. You intend to have the nicest property in the neighborhood and that it will be a great place to live.
On a related note, when renewing leases, we send a standard letter out with two options for every tenant- different lease terms for each option, but each option comes with a different rent increase. It's worked really well for us because we get an increase regardless and the tenants feel like they had the power to make the decision. We've been doing that for about four years and I have not had a call or conversation about rental increases since, it's been a game changer.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes9y
Originally posted by @Sam Levine:
I am about to close on my first fourplex this Friday through an owner-occupied FHA loan. The property fits my investment requirements at market rental rates. Unfortunately, the previous owner has kept the rents for these units at $525 each when the market clearly allows for $700. All the leases expire in the Spring of 2018. At that time, I am planning on having them reapply for leases with the increased rent. From what I can tell on LinkedIn, all 3 tenants are white collared professionals, and during our limited interaction, have been fairly communicative. My question is two-fold:
1. While living there, what would you recommend saying if they ask about rent increases upon the lease renewal?
2. How should I approach the situation when telling them about the increased rent?
Any first hand experience is much appreciated.
Sam,
1st off congratulations on your 1st investment. House hacking at it's finest. What your doing is an amazing way to build a solid financial future for yourself using very little of your own money. Great job.
As for the issue at hand I am never a fan of huge rent increases all at once in multi unit buildings. Especially when said rent increases are right after a change in ownership/management. Tenants are often very nervous and/or apprehensive when new ownership/management takes over. The biggest fear is that the rent is going up and or they will be kicked out. Couple that with the fact that most tenants hate their landlord, regardless of how the landlord treats them. This makes increasing their rent that much this soon a bad move. The turnover costs of a mass exodus is going to kill your 1st & 2nd year returns. All the money you gained from the increased rent amount was already lost in vacant time and the costs to update the units. Landlords, especially new landlords get so hung up on the fact that they can add $50 or $100 to the rent amount that they forget the fact that the turnover situation will end up costing them several thousand dollars. How long is a $4,000 investment payback at $50/mo? On top of that you can't even guarantee your new tenant will stay long enough at that $50/mo increase to payoff your unnecessary $4,000 turnover cost.
If all of that wasn't enough for you your situation adds another layer to the mix as you are actually living in the same building as them. That's going to create a hostile environment. No matter how nicely you word your letter or explain away increased operating costs they won't care. They are only going to see you as the greedy landlord trying to screw them over and they will screw you over the moment it suites them.
My company runs a $40M+ portfolio so I am one of the more well known landlords in my area and we are very active in the community and on social media. No matter how much good we do or what moves we make there are those that will always see us as greedy landlords out to hurt the little guy. Unfortunately this is how your tenants will view you as well. Your just going to have to get used to that. Take a look below, recently I posted a video blog giving Real Estate Investment advice on Facebook. Look at the comments from complete strangers. This type of commentary happens to landlords like myself who are in the spotlight on a daily basis. You may not be in the spotlight on a citywide level yet but I can assure you that you will be in the spotlight coming and going out of that shared building.
NOTE: When reading this remember that I am someone who is actually OPPOSED to major rent increases.
So what's the takeaway here? Am I saying you should NEVER increase the rent? ABSOLUTELY NOT! Your job as a landlord is to make the most profit you possibly can. I am saying a rental increase that is to big to soon is going to get in the way of your profitability & on top of that create a very hostile environment for a brand new landlord who is still green and living in close proximity to his tenants who will undoubtedly resent him in due time.
If I were you I would hand out my letters and offer everyone the option to renew their leases at the same rental amount. Doing this puts them at ease and keeps the rent coming into your pocket. It also puts them all on a lease that has all of the terms you wanted in there that protect you in the event you need to go to court.
When it gets close to the new lease renewal time I would increase the rent of the biggest problem tenant(s) but keep the ones who are on auto pilot the same or issue a very slight increase. Now that time has passed and everyone has settled down from the new management shock they are no longer afraid of you and thinking about packing their bags. Any turmoil that will be caused by your problem tenants won't cause the other tenants to panic and create a mass exodus which will kill your returns for the next couple years.
So you keep the easy ones and continue cashing the rent checks while your problem tenants can pay the higher amount or move out. Either option ultimately benefits you as your end goal is to have easy going tenants on auto pilot paying market rent while not breaking the bank to do so.
- San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes9y
There is no reason to have a current tenant apply. Applications are to find out if you want someone to move in. Once they move in, it's too late. So, if you raise the rents and they can't pay them, you evict them. But, think about how you'd feel if your mortgage lender told you you'd have to apply for your mortgage again, after you were already approved. You'll just alienate them, at best. And the thing is, if they refuse or can't pay, you're looking at court proceedings. Best to give them the choice to move out, if they can't afford the new rents, with dignity intact.
I was a resident manager in a building with 25 rented apartments. They will definitely be asking you if the rents will go up. Just tell them, yes, you'll be increasing the rents to be in line with market rents.
Then, if you want to keep them, you just increase it to just under market rents - by maybe $100 less than market at most.
They will be hitting Craigslist to see what they can qualify for, how much it will cost them in security deposits and moving costs and deciding if they want to deal with that.
Tenants never want their rent to increase. What will probably happen, as it did for me, is they will start seeing things that need to be fixed - as they start thinking in terms of "At this new rent amount, shouldn't I have better.....fill in the blank....floors, microwave, air conditioner, whatever."
Then, what I learned to say, in a very nice and understanding way, was something like, "I completely understand, and I don't want you to be unhappy here. So, if you decide to move, all you have to do is give me 30 days notice. And if you find a place sooner, I'll even work with you on the 30 days notice, if you want to move out sooner."
Normally, there is a very pregnant pause after this, and they look completely amazed that you didn't beg them to stay. And normally, they do end up staying.
So, don't be quick to offer them anything extra or special or above and beyond - because a brand new tenant will probably be quite happy with the place at market rent - as-is. At least, you should know what is available for market rates, so you can comfortably let your complaining tenant go, if they start demanding more than is necessary.
When I took over the place I managed, I was so happy to see old tenants go and replaced with new tenants who were happy to rent the place as-is, at market rate. You get a new tenant who willingly rents the unit at the price you advertised it at. So much more pleasant than dealing with a whiney tenant who thinks they should get the unit for way under market, just because they've been there a long time. They tend to over-value themselves.
I remember having a conversation with a law student tenant, who had become a lawyer and was trying to tell me her rent should stay at $650 when the market rents were now around $1200. And her argument was because she'd been a good tenant for so many years. I told her I could rent the place tomorrow for nearly twice what she was paying, so how does she justify the subsidy by the landlord?
They just often don't accept the reality - even the really smart ones who should know better. At least, until they get mad at you and hit Craigslist ready to show you a thing or two by moving out - and see what the going rents are LOL.
That said, we did keep our prices a bit under market to keep good tenants, knowing when they'd look at their options, they'd probably choose to stay put. But, I never let one hold us hostage simply based on how long they'd lived there.
- 9yJeff StephensPro MemberRental Property Investor · Portland, OR · Member since 2017 · 94 posts · 78 votes
Sam, congrats on closing this deal tomorrow! While I don't what the rental market is like in St. Louis (vacancy rates, how easy it is to lease-up), what the condition of this property is like currently, or what type of neighborhood it's located in (lower, middle or upper class, etc.)--and I do think all of those things need to be considered when developing your strategy--here is my two cents.
I agree with the previous comments about giving them a letter announcing the change of ownership, giving them your contact information, etc. After that, for the next several months, I believe it's important to demonstrate to them how you are as an owner and manager. If they can see--with their own eyes--that you right a tight ship and keep the place in good shape, etc. they will understand they are renting a unit in a first-class operation, and it should not come as too much of a surprise to them that you would be charging market rates. (I'm also guessing/assuming that the previous owner wasn't a resident of the building, so it will be a new experience for these tenants living in a building where the owner resides, and seeing what it's like when someone cares that much about the building).
I think that if the topic of rates comes up, you can imply you will be working to get the units to market rates; you don't have to cite a specific price at that time, but I wouldn't be afraid to show them and tell them that you're getting this property in tip-top performance.
I bought a four-plex recently where the rents were well below market too (tenants were paying $775). I chose to tell the tenants when I bought it that I would be moving all units toward market rates, which I estimated to be around $1,065. This gave them a chance to voluntarily move in anticipation of this increase; I just got the first notice from one of them yesterday, that they will be moving. That was a good thing in my mind.
I also agree that losing a three tenants at the same time in Spring 2018--if they all choose to leave--is not ideal, but at least that's a good time of year to be re-leasing the units. Again, this decision is heavily informed by the market dynamics in your market, and your own ability to afford a month or two of mortgage payments.
- Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes9y
I am with @Deanna McCormick and @Jeff Stephens. I would make it clear you are ok with them leaving early. That way you might be able to get some new people in faster to pay market rents. It also lets the tenants know that they are paying below market rents now.
- Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes9y
@James Wise Why not just get tenants who pay market rate on autopilot? This case as presented was that the OP is leaving 33% on the table as is. If he'll have substantial turnover or renovation costs to get that extra $175/mo, then that's a different story. And I'm certainly on board with you when we're talking about a silly $25 increase. But as it was presented, following this train of thought is like the expecting the bank to say on an adjustable rate loan, "Well, we can add 2% to prime, but you've paid on time for the past 5 years at prime, so we'll leave it there." Never will happen. Paying on time and not being a headache is a tenant's contractual obligation, not a bonus/luxury for me.
I like to think of myself as a reasonable person, but the benevolence only goes so far until it turns into charity.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes9y
Originally posted by @Matthew Olszak:
@James Wise Why not just get tenants who pay market rate on autopilot? This case as presented was that the OP is leaving 33% on the table as is. If he'll have substantial turnover or renovation costs to get that extra $175/mo, then that's a different story. And I'm certainly on board with you when we're talking about a silly $25 increase. But as it was presented, following this train of thought is like the expecting the bank to say on an adjustable rate loan, "Well, we can add 2% to prime, but you've paid on time for the past 5 years at prime, so we'll leave it there." Never will happen. Paying on time and not being a headache is a tenant's contractual obligation, not a bonus/luxury for me.
I like to think of myself as a reasonable person, but the benevolence only goes so far until it turns into charity.
Perhaps you may want to read my post again in its entirety. I went over the point that getting tenants on autopilot who pay market rent is the ultimate goal. You just can't do it all at once. Takes time if you want to maximize profit.
- Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes9y
As a landlord you should be taking 30% of your tenant's gross income. If they are professionals, it sounds like they probably make a lot more than $2,100 a month. If so, they are what would be considered upwardly mobile and can move. I want people who stay and pay. I wouldn't make them "reapply for leases." I'd just send them the required notice and tell them their new rent is $XXX. If they move, they were going to move anyway and are just staying put because they are taking advantage of their current situation.
Never be afraid to raise rent to market. The reality of that situation is, if you are really at market, they are going to eat a whole lot of moving expenses just to get the same thing they are already in. It's like people who get divorced. You like what you like. They leave their spouse and end up with the exact same thing in a different body. Better of to stick with what you've got. "Cheaper to keep her" if you will.
- Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes9y
Originally posted by @James Wise:
Originally posted by @Matthew Olszak:
@James Wise Why not just get tenants who pay market rate on autopilot? This case as presented was that the OP is leaving 33% on the table as is. If he'll have substantial turnover or renovation costs to get that extra $175/mo, then that's a different story. And I'm certainly on board with you when we're talking about a silly $25 increase. But as it was presented, following this train of thought is like the expecting the bank to say on an adjustable rate loan, "Well, we can add 2% to prime, but you've paid on time for the past 5 years at prime, so we'll leave it there." Never will happen. Paying on time and not being a headache is a tenant's contractual obligation, not a bonus/luxury for me.
I like to think of myself as a reasonable person, but the benevolence only goes so far until it turns into charity.
Perhaps you may want to read my post again in its entirety. I went over the point that getting tenants on autopilot who pay market rent is the ultimate goal. You just can't do it all at once. Takes time if you want to maximize profit.
I understand, but my point on this specific case is that he could have 4 months of vacancy and still break even if he raises rents. I'm sure any tenant who is living for free for 4 months out of the year will be the world's best tenant. Which then leads to the question of how much of lost rent should be traded for a stable tenant, and for how long should a landlord be expected to absorb the loss? When is it worth it and when is it not? I myself don't have a good answer for that.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes9y
Originally posted by @Matthew Olszak:
Originally posted by @James Wise:
Originally posted by @Matthew Olszak:
@James Wise Why not just get tenants who pay market rate on autopilot? This case as presented was that the OP is leaving 33% on the table as is. If he'll have substantial turnover or renovation costs to get that extra $175/mo, then that's a different story. And I'm certainly on board with you when we're talking about a silly $25 increase. But as it was presented, following this train of thought is like the expecting the bank to say on an adjustable rate loan, "Well, we can add 2% to prime, but you've paid on time for the past 5 years at prime, so we'll leave it there." Never will happen. Paying on time and not being a headache is a tenant's contractual obligation, not a bonus/luxury for me.
I like to think of myself as a reasonable person, but the benevolence only goes so far until it turns into charity.
Perhaps you may want to read my post again in its entirety. I went over the point that getting tenants on autopilot who pay market rent is the ultimate goal. You just can't do it all at once. Takes time if you want to maximize profit.
I understand, but my point on this specific case is that he could have 4 months of vacancy and still break even if he raises rents. I'm sure any tenant who is living for free for 4 months out of the year will be the world's best tenant. Which then leads to the question of how much of lost rent should be traded for a stable tenant, and for how long should a landlord be expected to absorb the loss? When is it worth it and when is it not? I myself don't have a good answer for that.
$525 × 12 = $6,300
$700 x 8 = $5,600
Using that example If 4 months of vacancy were the only cost he would still do better during year 1 at the old rental rate. But that's not my point. The lost rent isn't even the real cost landlords get hurt by. Its the turnover renovation. To take a unit that's been leased under market rent your most likely going to need to upgrade it. What's that going to run $2k,$3k or $5k?
Tenants in that price range move often. 1-3 years typically. The turnover is going to happen naturally. When it does you would want to upgrade the unit and lease it at market rate. I believe it is counter productive to the bottom line to create more $2k,$3k or $5k renovations then necessary.
- Investor · Oxford, MI · Member since 2016 · 110 posts · 41 votes9yBeginning and ending with the below... I would study up on what your lease turnover costs are. Then decide for sure what is right for your goals. Lots of great advice here except I would communicate (when you feel appropriate - me it would be a bit later than sooner when you have been their landlord for a bit longer) that market rent is X but I am raising rent to x due to great reference or whatnot. Seems your prepared to have vacant units - if the case I would probably move them close to or all the way to market. I would do it with the above mentioned letter. If I wager - none move out that were not planning to move out already - moving is expensive - moving is a pain - and if market rent is rising than I am guessing there is not vacancy signs everywhere so they will need to find something they actually want. Not sure I would have tenants re-apply if I could get synopsis from current landlord. I would take any opportunity to stager these leases some. I would study up on what your lease turnover costs are. Then decide for sure what is right for your goals.
- Greensboro, NC · Member since 2015 · 129 posts · 30 votes9y
@Ronda R. Great advice!
@Mindy Jensen Thanks for the tip on Tenant Estoppel Statements and transferring the security deposits.
@Kristina Heimstaedt Great input. Question, were you referring to tenants at two different properties? Just wondering if there is any legal consequence to raising one tenant's rent significantly more than another's at the same property without a "valid" reason.
- Greensboro, NC · Member since 2015 · 129 posts · 30 votes9y
@Sam Levine Responding to question #1: Personally, I wouldn't opt to give specifics. Just the letter as mentioned before.
Side note.....I've heard stories of disgruntled tenants doing malicious things because they were unhappy with an upcoming rent increase.
Congrats and good luck.
- Greensboro, NC · Member since 2015 · 129 posts · 30 votes9y
@Corby Goade I like you strategy. It is easier to get people to do what you want when they feel you've given them options.
- Real Estate Agent · Newport Beach, CA · Member since 2017 · 259 posts · 293 votes9y
@Troy H. the squeaky wheel tenant is in a duplex with a different unit on the same property. I agree that it could make things complicated if tenants were in the same type of unit and one had a dramatic increase while the other didn't. However, there are apartment complexes where there are many tenants and they all pay a slightly different rent rate based on a number of different factors.
Hopefully these points answered your question.
- Greensboro, NC · Member since 2015 · 129 posts · 30 votes9y
@Kristina Heimstaedt Yes, thank you.
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