Raising rents during COVID?

Question

Wanted to hear your thoughts on rent strategies in the current era.

As some states (such as Massachusetts) has extended moratoriums on evictions into the Fall, inevitably they will cross into lease end/renewal times.

How are you mitigating any prior expectations about increasing rents at end of lease (keeping pace with expenses) vs tenant retention at this time?

Rick Bassett · Answer

@Amanda Forde

We had three or four leases that were coming up for renewal during this Covid window and had planned moderate increases for them but given everything that was going on we thought it better not to implement the small increases if it generated a chance of turnover, which quite frankly we did not want to deal with during the height of Covid.

Chris B. · Answer

I have one tenant who was scheduled for a substantial rent increase in a home that is renting for well below market rates but I delayed it for 6 months as she's having trouble paying the current rate.  I have another home that I just placed a new tenant in and raised the rent significantly higher than what the previous tenant was paying and it is now back up to market rate.  Be considerate of the tenant's situation, but where appropriate you shouldn't short change yourself.

Theresa Harris · Answer

@Amanda Forde  some places have banned rent increases, so check your local laws.  Otherwise, it would depend on the tenant.  A tenant who has had problems paying the rent due to job loss (not one who is refusing to pay the rent), might appreciate no rent increase this year or you could increase it 6 months through their lease (include it with the renewal).  Most people are not going to move over a small rent increase.

Dick Rosen · Answer

I agree that you may have to look at some situations differently with a little compassion for the situation but bottom line is, I'm running a business market rates have increased on average over 8% this year in my market. In most cases my renewals are getting a 5-8% increase and I'm not getting any push back from most.

Christian Nachtrieb · Answer

@Amanda Forde I have two rentals in Dorchester and while I had expressed the desire to raise rents last year with the tenants, both have been great in terms of taking care of the units, and being respectful neighbors, and of course paying on time. I thought it was in my best interest to keep them locked in (both renewed for 9/1) at the same rate. No need to be greedy right now.

Raising rents during COVID?

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