Property Manager · Minneapolis, MN · Member since 2020 · 4 posts · 2 votes
Our tenants current lease is up June 1st. We sent a lease renewal form for the next year with a rent increase of $20. Mortgage expenses had gone up by $50 in the last year.
Tenant is interested inside renewing for another year but is asking that we don’t raise rent due to her not working because of COVID. She owns her own cleaning company and did just get PPP.
We are contemplating waiving the rent increase until businesses open again, and resuming the $20 increase then.
What are people doing with rent increases right now? Skipping them or business as usual?
@Nicole Lakanen we had rents scheduled to go up on 10 of our tenants starting in May. We've decided not to increase rents at this time. I'd like to have the extra income but to me it didn't seem right to raise rents right now. We may re-evaluate in a few months. Fortunately we're in the position where we don't have to raise rents. You may consider negotiating with your tenant to see if a rent increase in 3-6 months might be a suitable compromise.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
I have 2 grandfathered rent controlled. They are significantly under market (though I would never re-rent them without a gutting) I have calculated their rent increases and will draft a lease that does not implement the increase for 6 months. If I forgo their increase then it is lost forever- kinda like compounded interest.
My other tenants I will not be raising rent on, they are all working.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
6y
I have a tenant who has been furloughed "until further notice". Lease is to expire mid June and he is not sure he can afford to renew for one year and wanted to explore options.
Other than not increasing rent, switching to month to month, the "until further notice" does not give much to budget and plan. Are you all doing anything for well behaving tenants with expiring leases or are you looking to turn over tasks and new applicants?
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Sam Leon I know that one of my tenants is out of work and she communicated as much to me with the April rent. She has paid May rent and I would assume that she is either working again or collecting UE. I was prepared to have a telephone/video conference/ in person (6ft!) with her, I would suggest you do the same with this individual and do a deep dive into their finances and employment prospects and see what can fit.
The bottom line for me is that I see this getting far, far worse. I see people not going back to work and I see a serious economic downturn. I am more concerned about December rents right now. I know I am a pessimist, but it has served me well. Hold onto what you can unless it does not make financial sense. We can only spend our way out of this for so long.
This is why I am not forgiving rent... This is going to get much, much worse.
Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
6y
It's been business as usual for me but I did not send out renewals to those who are struggling. They may go MTM for awhile if they hang on and then I'll renew with an increase