I have never had a renter in one of my rentals long enough to raise the rate on them. One of my houses I am charging well below market value I have recently learned. The current renter is dependable...pays on time, takes care of the place, etc.
I would like to increase the rent but at the same time do not want to lose the renter as you never know who is coming next. I do my due diligence prior but I am sure anyone with experience can tell you that you can only go so far and nothing is guaranteed.
Can someone maybe give me some pointers on approach/methods of raising the rent?
Be honest with your tenants. Tell them that you really appreciate them being a good tenant. As an example, you are only charging them $1000 when the current market in the area is $1500. You really want to keep them in the house, so you are only going to increase the rent to $1200. You get more profit, they are still paying below market value.
If you need to, justify it with increases that you have had to pay...i.e. taxes increases, more maintenance, etc. Maybe include a free upgrade for re-signing...i.e. new fridge, $200 credit for flowers to plant around house, security system...whatever is important to them. That way, you give them incentive to stay while still getting your increase. As an added bonus, that fridge or flowers stay with the house and increase the value.
Hope that helps!
That's a great idea!!! I never would have thought about incentives to stay to be able to tack on a couple hundred bucks to rent. They have been asking about a new stove and possibly installing a security system.
Im happy to do that if they are willing to sign an extension.
thanks for the great advice.
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