Rental Property Investor · Member since 2020 · 160 posts · 40 votes
So I bought my first property and this townhouse already has a tenant in it. They pay 976 and I want them to sign a new lease of 12 months for 1300. Is this a good thing? the townhouse has 3 bedroom and 1 bathroom and I'm thinking of adding another bathroom. My agent told me the people there have been living it good, so it would be wise to increase the monthly rent. I do trust my agent, but I also want opinions from the Bigger pockets community.
How did you come up with the $1300 number for rent? Look at what the comparable properties rent for. Also check if there is a limit on how much you can increase the rent and if they are currently month to month or under a lease. If the latter, you need to wait until that lease expires. If they are good tenants, raising the rent over $300 will probably cause them to leave.
As for adding another bathroom, wait until the unit is empty. Doing a major reno like that when it is occupied is asking for trouble. Also check out how much it would cost and how much extra rent you'd get as a result.
Investor · Butler, PA · Member since 2014 · 130 posts · 114 votes
5y
Why is it people always tell others to get property managers? The answer isn't "get a property manager", the answer is learn, grow, and educate yourself better. Thats what this website is for.
No offense, but a lot of the questions you have should have been addressed prior to purchasing a rental property. That said, the answer is not get a property manager. Read and then read some more.
New to Real Estate · Dalton, NH · Member since 2020 · 116 posts · 64 votes
5y
@Fahadbin Alam I agree with everyone above about changing the rent that much is going to push out your renter and if you have a reliable paying renter right now you have pure gold. Now since you want to improve the property for a brrrr and would like to increase the rent. First I'd tell the renter you have plans to improve the property and ask if the renter could handle a moderate increase, as was suggested maybe only 200$. Tell them you are ready to help them through the process and make sure to be as helpful as possible. Renting temp storage and hiring people to move their stuff out and back in for instance. Talk over the possibilities with a contactor or designer and use that list for the questions for the renter. Here is an old trick ask people to choose between two options (second bathroom or opening up the kitchen and living area). This keeps people from having to come up with their own idea as well as makes it clear yes the house is going to have work done on it but they feel in control due to choosing what work. Don't forget to throw in just freshening up the color scheme as something you are doing (paint gives you a lot of bang for your buck) as well as replacing the flooring if it isn't new(removing rugs and putting in LVP is a big win).