Website design By BotEap.comEvery landlord is faced with the question: should I increase the rent? And if so, how much and how often? I like to use what we call annoying augmentation.

Website design By BotEap.comIf you increase the rent too much, you risk the tenant moving out. An increase of $ 50- $ 100 or more will likely make your tenant think of another place to call home. Now, if for some reason you haven’t increased your rent in many years and your current rent on the market is really $ 150 more than what you are charging now, you have two options.

Website design By BotEap.comFirst, you can increase the rent by the full amount, explaining to your tenant that it is the current rate and that you will have to pay that amount elsewhere for a comparable home. However, there is still a good chance that they will move out because they are probably not prepared to take such a big hit on their budget.

Website design By BotEap.comThe other alternative is to start using the hassle increase strategy by increasing your rent each year when your lease is renewed by approximately $ 20- $ 25 until it reaches the current market rent. This amount will generally not cause a tenant to move out; It should feel like a minor hassle for them, but it’s easier for them to pay $ 20 more per month and then go through the hassle of finding a new place and moving all of their stuff. .

Website design By BotEap.comIdeally, you should use the nuisance increase strategy from the start with all of its properties. However, there is an upper limit to what you can charge for a certain property. You don’t want to price your unit outside of the current rental market; Stop raising your rent before you get to this point. Instead, reevaluate every year and raise the rent only when prices go up again.

Website design By BotEap.comIncreased nuisance works well because tenants can understand that property maintenance costs increase over time. Each year you typically see a small increase in property taxes and insurance, and repair costs rise over time as well. Tenants agree to this. They usually don’t agree with you hiding them with a big rental hike.