Annual rent increase

[Anonymous]

If you rent or have rental property, what percent do you typically see rents increase or raise rent each year?

[Anonymous]

Depends on inflation so there is no typical. Lately, though, the increase has been astronomical- between 8-10 percent.

[Anonymous]

I determine my rental properties rent after looking at my competition rental rates.
Usually I put it few hundred dollars cheaper to get more applicants.
I only increase it during tenant turnover and the biggest rental increase came after COVID and now it seems stable.

[Anonymous]

Anonymous wrote:I determine my rental properties rent after looking at my competition rental rates.
Usually I put it few hundred dollars cheaper to get more applicants.
I only increase it during tenant turnover and the biggest rental increase came after COVID and now it seems stable.

I do similar. I might raise it $50-$75 a month every other year or so for existing tenants but increase it several hundred dollars at turnover.

[Anonymous]

I build in a 2% a year increase during the lease term, and then increase the rent to market value at the end of the lease.

[Anonymous]

I typically increase rent annually no matter what (costs increase). I might increase by 2% if it's a great tenant that I want to keep or 10%+ if I am looking to shake a bad tenant.

I have also decreased the rent to keep a great tenant. I"ll also get birthday and holiday gifts for great tenants.

An extra $50 or $100 bucks a month isn't going to make or break my rental.

[Anonymous]

We are renting a sfh that we own this year. If our 100 percent reliable tenants want to stay another year, we probably will not increase it. After 2 years, we might increase by 5%.

[Anonymous]

In DC, it has been consistently more than 6-7% with my properties.

[Anonymous]

7-10% for different properties

[Anonymous]

We raise 10% each year.

[Anonymous]

Depends on market … recently, bc of rising rents, 10% each year.

[Anonymous]

My management company makes recommendations every year based on the market. Generally, they recommend 3-4% but we have a long-term tenant that takes good care of the place, she is a reliable and responsible tenant, and during COVID she never missed a rent payment. Therefore, we keep her increases low, and some years have stayed the same. It's worth a lot to have a good tenant that pays and doesn't cause issues. I would take several factors into account when setting increases, one being how badly you want to keep the tenant - or not.

[Anonymous]

Anonymous wrote:My management company makes recommendations every year based on the market. Generally, they recommend 3-4% but we have a long-term tenant that takes good care of the place, she is a reliable and responsible tenant, and during COVID she never missed a rent payment. Therefore, we keep her increases low, and some years have stayed the same. It's worth a lot to have a good tenant that pays and doesn't cause issues. I would take several factors into account when setting increases, one being how badly you want to keep the tenant - or not.

Yes!!! This is exactly right. Good tenant? No increase. Crappy tenant, rent increase as much is as reasonable and hope they get the hint.

[Anonymous]

Anonymous wrote:My management company makes recommendations every year based on the market. Generally, they recommend 3-4% but we have a long-term tenant that takes good care of the place, she is a reliable and responsible tenant, and during COVID she never missed a rent payment. Therefore, we keep her increases low, and some years have stayed the same. It's worth a lot to have a good tenant that pays and doesn't cause issues. I would take several factors into account when setting increases, one being how badly you want to keep the tenant - or not.

This. If you have a great tenant and raise 10 percent every year you're being penny wise and pound foolish. On the flip side, if the tenant sucks feel free to jack up the rent.

[Anonymous]

Housing a crappy tenant is expensive. 10 percent increase may not cover it but at least if they leave the blood pressure goes back to normal.