Posted by Julia on April 09, 2002 at 17:30:20:
Does anyone know if there’s rent control in Florida, Saint Petersburg area, and where to find out?
Thank you
approriate rent increase - Posted by lils
Posted by lils on April 04, 2002 at 11:43:44:
I’m in Connecticut and I would like to know what the percentage range is for an appropriate rent increase.
Many Thanks
Re: approriate rent increase - Posted by David Krulac
Posted by David Krulac on April 04, 2002 at 18:01:45:
you can tell what is going on in your local market from the newspaper/otehr media ads. Are they giving away color tvs and appliance to rent apartment? if so the market is soft. are they giving 1 month free rent and zero security deposit? if so then the market is soft.
The HUD site has the fair market rents for all smsa in the country at:
www.huduser.org/datasets/fmr.html
David Krulac
Re: approriate rent increase - Posted by GL(ON)
Posted by GL(ON) on April 04, 2002 at 15:52:12:
I went over 5 years without an increase recently. The market wouldn’t stand one. Too much supply, not enough demand.
Now the situation is different and I have increased the rents a little, 3 or 4 percent a year.
It is all a question of supply and demand. Your rents should be in line with what others are charging.
Here is an old joke that explains the procedure:
Why is a landlord like a poker player?
Because he always raises when he has a full house.
(Credit to Captain Billy’s Whiz Bang, April 1923)
If your rents have not been raised in years and are way low, you have to go easy. If any apartments become vacant of course you charge the new tenant market rent. But in the case of old tenants, they will likely get sore. You can let them get sore, and threaten to leave. They probably won’t when they find out everyone else is charging the same or more. Or you can charge them the full rent increase, and when they squalk say “What do you think would be a fair middle ground?” They will cut the increase in half and you accept. That way you both make some money LOL. By the way if they don’t squalk and pay the full increase, you should do something nice for them such as repaint their rooms, before you do the others.
The best policy is to have a small increase every year even if it is only a couple of bucks. YOur tenants will get used to it and you will not have the problem of putting on a big increase.
Re: approriate rent increase - Posted by sean
Posted by sean on April 04, 2002 at 16:15:21:
I have a question that follows with this subjuct.
I am buying a triplex soon, 1 two bedroom unit rented for 350 a month 1 year lease. 2 one bedroom units, one rents for 575 a month on a month to month basis, one is empty but will be rented before closing (I can’t belive they agreed to this!) for 550 a month(it’s smaller than the other)
You can see my delema, how do I raise the rent on a 60 year old woman (going rate is 650) who’s been there for 12 years?
I’ll still come out ahead if I don’t but only by like 12 dollars a month
what to do what to do?
Re: approriate rent increase - Posted by Brent_IL
Posted by Brent_IL on April 05, 2002 at 10:56:00:
It has been my experience that long-term tenants will resent a $5 increase. I’d make the seller give her a 90 day notice of an increase to full market rent prior to closing. The women will not pay your bills. Who knows, the seller may be selling the property to be rid of a low paying tenant whose rent can not be raised for diplomatic reasons.
Re: approriate rent increase - Posted by GL(ON)
Posted by GL(ON) on April 04, 2002 at 16:36:37:
The price should reflect the rents. If the rents are low, the price should be reduced. Who will buy it if it 's losing money? Get them to reduce the price.
Then rent the empty for market rent. I am leery of having the seller it. What if he rented to the first harum scarum that comes along? What does he care? You should have the right to approve the new tenant.
You think that’s bad, I looked at a 5 unit building where one woman was there 42 years, she was paying $275 a month including heat and utilities when the going rate was $700.
Do they have rent control? If they do you will have to go by that. If not, try to be reasonable. Say you increase the rent $200 and she says she can’t pay it. Ask her what she thinks would be a fair middle ground. If she says $100 take it. Or even $50. Take whatever you can get. I know you will be losing by it but what can you do? That is why you have to make sure the price is reduced.
Eventually she will leave, or you will gradually work the rent up to a reasonable level with annual increases.
Re: approriate rent increase - Posted by sean
Posted by sean on April 04, 2002 at 20:32:54:
Thanx for the info