All Forum Posts by: Gabriel Hernandez

Newbie here. It seems like most people are saying 5+ years. That’s higher than I expected. Have you guys been raising rent every year or only on years when the rental market has gone up? Are you planning on continuing to raise it in the coming years as the market stays hot? Do you raise it by a percentage or dollar amount? 

Wow thank you for that breakdown Bill! Thats exactly what I was looking for. 

Thank you all for the responses. It may seem like a common sense question but I was curious what the more experienced investors have seen so thank you for that. I am hoping because I’m in a very hot Phoenix market (one that seems to have been hot my whole life) with some of the lowest property taxes in the country that rent increases will outpace expenses. I am very happy with our property management company as they asked for more in rent than I would have because they knew this rental market better than I did. They are also pretty on top of stuff so I feel at peace with our decision to hire property management. 

Hello, I’m a new poster and investor from Phoenix, AZ. It seems the general data shows that rents have gone up about 3% per year over the last 30 years. If I own a rental now that cash flows about $200 a month, will it’s cash flow increase each year as rents go up about 3% per year? Maybe there will be years ahead where the rent grows less than others but it seems that the 3% average growth accounts for this. I understand that inflation will also drive expenses up but it seems like that still wouldn’t be able to keep up with rent growth. I typed in my rental into the BP cash flow calculator and it supported this theory. It showed that cash flow goes up every year because of the rent growth. I would love to hear input on this.