All Forum Posts by: Vance Sander
Vance Sander has started 2 posts and replied 6 times.
Post: Strengthening Leverage in a Dreaded Rent Renewal for Higher End Property
- Posts 6
- Votes 1
Quote from @Scott Mac:
Is there a large pool of renters in your area, with $7,000 a month burning a hole in their pocket?
Is there a large pool of competitor vanity homes sitting un-rented for $7,000 a month competing for that same renter pool.
What is your appetite for risk right now: "Faint heart never won fair lady" or "pass on this".
Thx - Not a large pool - thus the sitting for a few months reality. There is not a lot of competition, though. Just seems impossible to get more leverage than more or less "whatever works for you to stay." The risk/reward seems highly weighted in favor of keep tenant.
Post: Strengthening Leverage in a Dreaded Rent Renewal for Higher End Property
- Posts 6
- Votes 1
Hi -
I have a unit that rents for around 7k - At that rate, I find renewals to be a difficult calculation where I seem to have very little upside to raise rent much, if at all.
Let's say I can raise rent 5% - if the tenant balks, I'm looking at a broker commission of 7k + cleanup/paint + possibly new carpet + 1-3 months of downtime until a new tenant actually moves in - $30k+ range. If tenant says ok, I've gained $4200 - seems like I've always got a huge incentive to keep the tenant, unless they're problematic for other reasons.
Is there some other strategy or analysis I could be doing to make me feel like I have more leverage?
Thanks for any input!
Post: Raising Rent vs Losing Tenants - Advice on avoiding fear pls
- Posts 6
- Votes 1
Quote from @Michael Baum:
Hey @Vance Sander, are we talking a STR or a LTR here? Just an FYI, you posted in the STR forum.
I will say that everyone said correct stuff. Most of them own LTRs as well.
Ah good pt - meant to be in LTR -
Post: Raising Rent vs Losing Tenants - Advice on avoiding fear pls
- Posts 6
- Votes 1
Quote from @Theresa Harris:
Get used to doing annual increases. Even if some of them are only $20 a month, it a) gets you and the tenants accustomed to increases, b) it adds up over time and I'm betting your expenses have increased, c) few people are going to move over small rent increases and d) from b and c the small changes over several years ensures that you are keeping up with market value.
Thx - yes, seems small amount of increase in a relative sense.
Post: Raising Rent vs Losing Tenants - Advice on avoiding fear pls
- Posts 6
- Votes 1
Quote from @David Ramirez:
Research market trends, and consider the value your property provides, if you see that they could get a similar property for a lower rate then I wouldn't raise the rent.
Post: Raising Rent vs Losing Tenants - Advice on avoiding fear pls
- Posts 6
- Votes 1
Hi -
I have an upper end condo in Los Angeles that rents towards the top of the market. I'm always concerned about raising the rent as the transaction costs in time & money are severe to lose the tenants - since it's a higher end place it takes longer to rent, then there's agent costs & new paint/rehab...
Any advice on how to avoid the fear/lack of leverage I often feel when raising the price - or what to be thinking about?
Thanks in advance for any input!