With lease renewals coming up , are you guys renewing it back to a Year lease with your tenants or just rolling it back month to month and why?
Also, i was planning on raising the rent by min 3% (25$) in my Tenants case. He has a job and is in good standing with me, but i inherited him when i acquired the property and the rent is def about 150$ under the market rents around the area.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
5y
@Vee Turato this is definitely a tricky question. On one newly renovated property I manage in Berwyn I opted to keep rents the same as they were already within 3-5% of the market rent. This allowed me to minimize vacancy which is probably for the best long term. On newly acquired properties in the Berwyn and Cicero markets where rents are $200-400 under market, I will probably do an aggressive rental raise once we are through the tail end of the Covid era. I am personally hoping that the Covid related lock downs end around March, which would be perfect for a 30 day notice of rent increase for April.
I think the important thing is to remember the Golden Rule though as you deal with people during this time. There are definitely tenants taking advantage, but many tenants are in a tough spot so we as investors would be wise to err on the side of caution.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
5y
@Vee Turato this is definitely a tricky question. On one newly renovated property I manage in Berwyn I opted to keep rents the same as they were already within 3-5% of the market rent. This allowed me to minimize vacancy which is probably for the best long term. On newly acquired properties in the Berwyn and Cicero markets where rents are $200-400 under market, I will probably do an aggressive rental raise once we are through the tail end of the Covid era. I am personally hoping that the Covid related lock downs end around March, which would be perfect for a 30 day notice of rent increase for April.
I think the important thing is to remember the Golden Rule though as you deal with people during this time. There are definitely tenants taking advantage, but many tenants are in a tough spot so we as investors would be wise to err on the side of caution.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
5y
@Vee Turato this is definitely a tough one. In normal times, I would always do a rental raise even if it is just $25-30. This pandemic is tough though. I think if you are $200 under market and the tenant is doing fine financially, it is justified to do a raise. The towns are still raising taxes, and I haven't seen any discounts for water from the local municipalities due to the heavier water bills with people stuck at home...
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
5y
We have been very lucky as all our tenants are 'essential' or changed occupations to make themselves 'essential', in fact several now work from a home office. The 3 long standing tenants had $50-$75/month increases last year but we will hold off any more increases until later 2021 as they are great tenants.
Fortunately the several that did vacate allowed us to raise rents $150-$175/month without a problem & the tenants we screened proved to be highly qualified & we did not have any downtime transitioning between tenants.
Existing or vacating tenants have often referred the vacating units to their friends. In fact one vacating tenant walked the unit & property on face-time as their friends were moving back from out-of-state. They applied, got approved & we had a $500 deposit before they arrived.
Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
5y
You asked about covid
if you are concerned the govt will stop all evictions month to month gets you around that
I have faith in my tenants so I am renewing some with 12 month leases. But also selling off properties when lease expires to take that money and invest in other rentals as well as timber to diversify