Razing Rent

10 Replies

I wouldn't raze rent,  unless you have money to burn. 

Sorry, I have trouble resisting a bad pun.

For a real answer to raising rents:

I generally keep rents the same for a couple years for really good tenants. I normally say something like,  I'm going to keep the rent the same for another year and imply that it will go up in thier 3rd year of tenancy. 

Do you go month-to-month at the  end of leases?  Renewing for a full year makes it more clen in my opinio.  Doesn't have to be any more complicated than a brief simple letter giving them 30-60 days notice that you intend to renew the lease at a new rate. 

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I just wrote a letter explaining that rents were being raised, when the new rate too effect, and how much is was.  My tenants are month to month, so I sent the letters about 45 days before the rent was to kick in.  No objections, but we're in a very, very tight rental market here.

I reevaluate the market every year at renewal. If rent has gone up than I raise rents accordingly. It is important to me to keep rents at market. It allows me to preserve my margin, have the money to continue repairs and prevent an issue where the tenant becomes so below market that you lose them to raise rents to market level. I do not do m-to-m leases. In my lease m-to-m is a $300 a month premium. So every year 3 months out because my lease requires a 2 month notice. I give them 3 options a new rent amount at 1 year at 2 year and at m-to-m. I tend to have the 2 year less than the 1 year and the m-to-m at $300.

Originally posted by @Cal C. :
Originally posted by @Steve Babiak:

You will make tenants happy when you CUT their rent :)

http://i.word.com/idictionary/raze

Homonyms can get you like that ...

 Yeah and it is an antonym.  Are there any other two English homonyms so diametrically opposed?   

How about "accept" and "except"? Lots of BP members use those incorrectly when they write a post :)

Originally posted by @Steve Babiak :
Originally posted by @Cal C.:
Originally posted by @Steve Babiak:

You will make tenants happy when you CUT their rent :)

http://i.word.com/idictionary/raze

Homonyms can get you like that ...

 Yeah and it is an antonym.  Are there any other two English homonyms so diametrically opposed?   

How about "accept" and "except"? Lots of BP members use those incorrectly when they write a post :)

I think most of my tenants would except it if I razed rents...

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