Youngsville, LA · Member since 2017 · 74 posts · 10 votes
I inherited a tenant whose lease is up in the middle of the month. The previous lease had a 2% automatic rent escalator. I'm about to approach the tenant with a new lease / terms with the "baked in" escalator rent increase.
Have you dealt with this before?
Did you raise the rent as per the existing lease?
Did your rent increases accompany any value add / deferred maintenance work?
Did your new lease differ materially from the previous lease?
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
8y
@Account Closed my very first building was a four unit in Lyons, IL, and I inherited four tenants. They turned out to be excellent tenants, and I have kept all of them now for a fourth straight year. I have raised rents around 3% annually, which actually may be a little low for my area! I bumped this to 4% this year due to rising taxes, etc. I did not personally spell out an automatic rent escalator based on percentages, because in some years rents appreciate a lot faster tan 2 or 3%.
I normally do maintenance twice per year in batches. I typically try to do one batch about a month before the leases hit so that I can have a happy tenant base before rent increase time.