All Forum Posts by: Steve Yoder

In most of my buildings the tenants pay for their own utilities.  However, in one of my multifamily buildings (24 unit) I pay for both the water and heat (gas) which is costing over $55/month/unit.  It isn't cost effective to install individual water meters or individual gas meters.   What have you implemented to have the tenants share the responsibility for water and/or gas usage?  What has or hasn't worked for you? 

I'm purchasing a property (over 20 units) with the rents extremely low ($650/month average) for the area.  Average rents for the area are $800/month and the building is in a good location and is in good condition.  I'd like to get rents close to $800/month asap without loosing a lot of the tenants.  Most tenants are month-to-month. 

Do I raise rents a bigger amount the first year ($100) and a smaller amount ($40-50) the 2nd year or raise it where they should be the 1st year ($150)?   What have you found the be the best way to raise the rents without incurring a lot of vacancies?

First thoughts  - I'm wondering why he is dropping the price so much? From $300k to $200k is quite a drop.   Is it located in a good area?  I would ask if there are lease agreements in place especially the commercial space.  If the commercial tenant moves out then you have a neg cash flow and may be hard to fill.  Is there room to increase the rents or are they at the market rates?  Is the building in good shape or has the maintenance been neglected.  If you get a warm and fuzzy from those questions, then the numbers seem reasonable.

Good luck,

Steve

Hi - I'm interested in learning what others have found to be the best method for raising rents while retaining tenants?  Do you use letters, personal conversations, text/emails?