Investor · Venice, CA · Member since 2016 · 163 posts · 49 votes
I'm attempting to run my numbers with the variable of raising rent each year. I'd like to hear from landlords what percentage people in Kansas City and other like cities use to raise rents annually.
Off the top of my head, I remember hearing between 3-5%. To me, that is keeping up with inflation if you're closer to 3%, so I'm thinking 5-6% is probably more appropriate with rising taxes, cap ex, etc, etc.
Investor/Agent · Kansas City, MO · Member since 2017 · 291 posts · 308 votes
9y
I'm in KC and most of our properties rent between $7500-$1200 per month. A 3-5% increase in that price range is around $25-$50 a month give or take. Probably not a deal breaker for most of my people if we needed to bump it. I keep a pretty close eye on rentals that come on the market close to mine and base my decision more on where I am relative to other properties than a general % increase. If the tenants are good and things are going well I may not raise it at all for another 6 months or year as the relationship and investment is working. Whenever a property becomes vacant though I am definitely going to advertise at market rent. Others will differ in their approach.
Shawnee Mission, KS · Member since 2016 · 62 posts · 25 votes
9y
I've lived at several apartments in Kansas City, and all of them have raised rent $20 at various price points... so make what you will out of of that. It's 2.5% of my current rent.
Investor · United States · Member since 2015 · 415 posts · 487 votes
9y
I assume 3% per year when I run my spreadsheets, as that is the national historical average. In my experience, the farther in advance I tell my tenants the better they react.
I've heard some landlords say that they raise the rent when their costs go up (such as property taxes) to cover the increase, but that makes no sense. In reality, your costs have nothing to do with it--rent prices will be set by the market.