Re: What’s the best way to raise rent? - Posted by Jim IL
Posted by Jim IL on May 02, 2000 at 13:46:22:
That would entirely depend on the lease or rental agreement.
What does the agreement with the tenants say?
If it is a lease, for a term of one year and spells out the rental amount, then you may not be able to raise rent.
But, if it is a month to month rental agreement, you may only need to give them 30 days notice.
Check the laws for your state regarding Landlord/tenant law.
I raised the rent on two units in a duplex I own.
I raised them both equally, so I cannot address what to say to seperate renters.
But, all I did was to take and deliver a letter to each tenant stating that on such and such date the rent would increase.
I then fully explained the letter to each tenant to avoid possible confusion or objections later.
Each tenant saw that I was working to improve the property, and were happy to pay 10% more to stay.
I was after all upgading the place where the reside.
One tenant did say, "$50 more per month is a lot, is this to help you recover what you have spent? and isn’t that a bit much?"
I did not HAVE to explain further, but did anyway.
I told him that we were putting new windows on the place, new faucets in the kitchen and bathrooms, as well as new carpeting.
If he thought about it, $50/month would take a LONG time to “Recover” that cost.
Also, the $50 increase was rather small, as they has paid the same rent amount for over two years.
I also said that if the tenants did not like the new rent amount, they were free to move out, and I’d find another tenant.
They both are still there and paying the higher rent, on time too boot.
Just be nice, and explain things a bit to the tenants.
It worked for me,