Raising the rent on my tenants

2 Replies

My dad has around 33 units in a certain location here where we live in Ky. He has only raised the rate by $25 in the 25 years that he has had them. They seem to always stay rented with no problems at all due to the price, location, and them being pretty nice units. What is the best way to go about raising the rate to create more cash flow without loosing tenants?
25 dollars in 25 years yikes! Do you have a lot of longevity? I just purchased a couple smaller apartment bldgs where the rent is about 100 low per month. I have 3 tenants moving so immediately I am moving the rents up right away with a little updates. You need to figure out what the market rate is, and for sure with every vacancy increase to the market rent rate. If it's a big difference I might send letters to current tenant and do a rent increase smaller amt.

yea that’s what I told him. I think they are currently at $550. He says that’s about right for the area but I don’t think he takes into consideration the location and how nice of an area and appartments they are. I heard once from someone that you should have around 20% of customers/people complaining about your price which allows you to get close to the maximum amount you can charge and still have people buying or renting. I think he can send letters out explaining why he needs to raise them. I mean if he raised it $100, even if 4 tenants left and those units never got rented again the remaining plus still have a larger cash flow.