Calling BS on ‘major room for rent increases’
I am calling BS on agents saying ‘major room for rent increases.’ I have not bought a rental property (yet), but I’m researching the possibilities. I am highly skeptical that a new owner can just come in and say ‘hey tenant whose been here for however long, I’m the new owner and you are paying $600 per month but market rates are $800 now, starting next month rates are going to market rate, want to stay or move out?’ My hunch this is more marketing ploys to entice rookie investors than it is realistic to actually increase rents considerably in a short amount of time. Right?
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@Justin Gottuso
Well, it depends. My last duplex I bought the rents were $1,100. I made some quick improvements and rents are now $1,430-1,480. Mostly what I would watch out for is the real estate agent that puts out a Pro Forma trying to justify the asking price based upon some magical future rent that the current owner has never gotten.
You always need to do your own research and run the real numbers. Never trust the numbers from a listing agent without verification.