Rental Property Investor · Helena, MT · Member since 2017 · 282 posts · 117 votes
Just curious who out there has raised their rents lately with COVID somewhat becoming normal. I'm looking at bumping up my rents by $25 for the fall increased property taxes. I'd have to raise them for November based on the proper notice for MTM tenants. Otherwise I could wait until May.
Real Estate Investor · Crescent Mills, CA · Member since 2010 · 127 posts · 74 votes
6y
Your costs are increasing, so if you don't pass them on, it will affect your cash flow.
The lower income will also decrease your property value. (at least for any property valued based on cap rates) Could be an issue if you have lender requirements for equity (rare, unless your purchase or last refinance was close to maximum leverage).
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y
In the last two months I’ve raised rents $50, $100, $100, and $270 On 4 properties that had leases expire. (These are mostly 2 year leases.) I also raised rents $100 on 3 mtm rentals. It doesn’t matter if your costs went up, there’s been inflation. Nobody moves over $25 ($300 year) it’s not worth your time and upheaval if you could move for free with no self-labor.
Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
6y
In my opinion taxes do not dictate a rent increase, the market does. I manage several properties so we have lease renewals with rent increases every month including 2020 inspite of COVID. I run the comps and increase rents based on market appreciation. I've done 8% on most properties all year up until this month, this month I had 5 of them and they averaged about 7.5% increase.
I have no idea what the Property Taxes are but I do know market rents.