Rent Increases - Posted by Rae Manchester

Real Estate Investing Real Estate Gurus
#1

Posted by Kevin on January 28, 2002 at 17:52:28:

If raising the rents are that important to you, there are a few ways to do it.

  1. Raise them periodically in $25 amounts. This is not an increase substanial enough to scare someone away and you can continue to do this once a year or every six months until you reach the desired rent.

  2. You might want to raise them and consider Section 8 rental. This is a guaranteed amount and you can fill a vacancy almost immediately if someone does leave. The only negative thing about it is that Section 8 decides the rent amount based on your local market

  3. You should also look into a rental agency. There are some where they will locate tenants for you and it is a free service to the landlord.

Just a couple of ideas to help you out…

#2

Rent Increases - Posted by Rae Manchester

Posted by Rae Manchester on January 27, 2002 at 23:59:26:

Hi All,
I have a question about rent increases. I just closed two weeks ago on a three family house. The rents are below the current market $100 to $175 per apartment. My question is: How do I increase the rents without creating a hardship on the tenents, or ticking them off so they leave? They have lived there a long time, and two tenants are related. My first instinct tells me to just go for it and raise it the full amount, if they move I can charge the new tenent the higher rent. But, the risk is losing more than one tenant and the income if it isn’t immediately rented. Any ideas? Thanks.

#3

Re: Rent Increases - Posted by Ed Doherty

Posted by Ed Doherty on January 29, 2002 at 21:16:26:

I bought a 2 family 12/99 and the tenant upstairs was the daughter of the seller and paying $150 ($500) under market. I let them know I could not make the deal unless I had $650 a month. This was more than fair and after the initial sticker shock they were ok. I just made sure I was very attentive to their needs.
I raised rent in 9/00 to $675. 9/01 to $700.
She kicked the old boyfriend out and had a new one start living there. I asked what there intentions were and they offerred to pay $775 a month. I said $750 was fair. (the market is real strong and average rents are 800-1000 now). I have no problem because there are no good apartments out there. I am buying the 2 family next door and going to start at $850 a month after a nice cleanup.