Rent increase

[Anonymous]

Anonymous wrote:Your tenant probably thinks you're a sucker. They've probably been getting pay increases at work, especially this past year, and see rents increasing around them, and yet you keep the rent the same. They're probably grateful to have such a clueless landlord.

You are a clueless about renters and the hazards of renting! My landlord has not raised the rent significantly and I am very grateful, low key tenant. Don’t make demands and I only call when absolutely necessary. I think that my landlord and I are both smart and considerate. If they did a big jump in rent just to jump, I would be much less inclined to deal with things myself and I would make sure I got every single repair needed in a timely fashion in a manner that did not inconvenience me at all.

[Anonymous]

Anonymous wrote:You don’t run a charity. Raise rent to at least market rate. Have you even been in the house in the past few years? They probably trashed it thinking you don’t care. Higher rent means higher caliber renters. Kick out the free loader.

+1000.

I own 14 rentals. This is a business. If you're in the DC area where rents are often in the $3000 a month range, even a 10% raise is acceptable if the market allows. 300 x 12 x 5 at 6% is money left on the table. Big time.

Inother words, that's $20,000 you left on the table.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Your tenant probably thinks you're a sucker. They've probably been getting pay increases at work, especially this past year, and see rents increasing around them, and yet you keep the rent the same. They're probably grateful to have such a clueless landlord.

You are a clueless about renters and the hazards of renting! My landlord has not raised the rent significantly and I am very grateful, low key tenant. Don’t make demands and I only call when absolutely necessary. I think that my landlord and I are both smart and considerate. If they did a big jump in rent just to jump, I would be much less inclined to deal with things myself and I would make sure I got every single repair needed in a timely fashion in a manner that did not inconvenience me at all.

You are the clueless one. The lease outlines the landlord's responsibilities, not your demands. Make all the requetss you want; he doesn't have to entertain any of them not required by the landlord.

And when he kicks you out, he'll trash you every time a subsequent landlord calls for a referral.

[Anonymous]

I've never understood why landlords feel so superior to renters. If it's simply economic, well, I live in NYC; there are people here who rent apartments for $20k a month, and more (much more). They could eat most of you small-time DC landlords for lunch. So congrats that you own some vinyl-sided sh*tshack in Vienna, I guess.

[Anonymous]

Anonymous wrote:I've never understood why landlords feel so superior to renters. If it's simply economic, well, I live in NYC; there are people here who rent apartments for $20k a month, and more (much more). They could eat most of you small-time DC landlords for lunch. So congrats that you own some vinyl-sided sh*tshack in Vienna, I guess.

"I know people" = I don't own sh*t. Loser.

[Anonymous]

I increase the rent every year to keep up with inflation/market conditions. Start closing the gap, OP.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Your tenant probably thinks you're a sucker. They've probably been getting pay increases at work, especially this past year, and see rents increasing around them, and yet you keep the rent the same. They're probably grateful to have such a clueless landlord.

Hey troll, go phoque yourself.

For others, if you are older (and you don't have to be to appreciate), sometimes you come to the understanding that $300, $400 isn't going to change your standard of living at all.

But it may change the quality of life for some young professionals that have taking very good care of your paid off townhouse that you don't particularly want to have to manage now.

Win-win.

OP, you're being taken for a ride by someone immature like this. How about this -- if the tenant balks at the rent increase, tell them you're happy to look at their most recent paystub to help make a determination as to whether a rent increase is appropriate.

That is completely inappropriate.

[Anonymous]

You have a horrible mistake with significant financial consequences. Rent should increase with inflation. People typically get raises annually and everything gets nominally more expensive annually. Small rent increases annually are expected and well tolerated. Large increases are pain points. You have also set expectations that rent won’t be increased. You have in a way forced your good tenant out.

To make it worse since your own property expenses have increased you have I actually been lowering rent the rent steadily over the years.

$100 per month annual rental increase starting 5 years ago has deprived you of over $20,000 so far. Assuming you corrected that mistake right now it will have cost you (using a 6% return) $36k in 10 years and $64k in 20 years, if I use 8% instead of 6% the loss amplifies to a $100K mistake.

This going to sound very harsh, but you should consider selling this property. Unless that money is literally meaningless for you, the financial mistakes that you are making are too expensive for this to continue as a hobby for you.

[Anonymous]

Anonymous wrote:You have a horrible mistake with significant financial consequences. Rent should increase with inflation. People typically get raises annually and everything gets nominally more expensive annually. Small rent increases annually are expected and well tolerated. Large increases are pain points. You have also set expectations that rent won’t be increased. You have in a way forced your good tenant out.

To make it worse since your own property expenses have increased you have I actually been lowering rent the rent steadily over the years.

$100 per month annual rental increase starting 5 years ago has deprived you of over $20,000 so far. Assuming you corrected that mistake right now it will have cost you (using a 6% return) $36k in 10 years and $64k in 20 years, if I use 8% instead of 6% the loss amplifies to a $100K mistake.

This going to sound very harsh, but you should consider selling this property. Unless that money is literally meaningless for you, the financial mistakes that you are making are too expensive for this to continue as a hobby for you.

Where did you learn math? DC schools?
Did you even consider the cost of rerenting a unit?
BTW NOYFB.

[Anonymous]

Anonymous wrote:we have a tenant who has rented out a townhouse for the last 6 years, he is a great tenant, pays on time, takes care of the place, and unless some big issues do not bother us.
This area has gone up significantly in rent, new townhomes rent around 30% more, I am wondering if we should continue renting at the lower rent or put it back out on the market

Are you insane???

You have a great tenant, who for the past 6 years has paid on time, he takes care of the property, and unless some big issues come up, he doesn't bother you, and you're all like:

"Hmmm? Maybe we've had it TOO good for TOO long? Maybe we've been lucky for TOO long? Maybe it's our turn to be smacked upside the head to give us a reminder of the dregs of society and reality? We've had an amazing run for the past six years, but I guess it's our turn to get a harsh reminder about squatters rights, and damage to the property, and non-payment for months on end... and by the time we realize that we should've been GRATEFUL for our wonderful tenant, it will be far too late. Oh well... break out the Craigslist ad!".

See what I'm getting at?

Ask him to pay 10% more this year, then 10% more next, and every two years after that (since you didn't increase the rent at all in 6 years) but for the love of God, do NOT let this tenant go!

... and if you DO happen to choose chaos & insanity, rather than stability and piece of mind; please post your tenants number here.
I'll be thrilled to rent to him and unlike you, I won't take his respect for my property (and myself) for granted.

- owner/landlord

[Anonymous]

Anonymous wrote:

Anonymous wrote:we have a tenant who has rented out a townhouse for the last 6 years, he is a great tenant, pays on time, takes care of the place, and unless some big issues do not bother us.
This area has gone up significantly in rent, new townhomes rent around 30% more, I am wondering if we should continue renting at the lower rent or put it back out on the market

Are you insane???

You have a great tenant, who for the past 6 years has paid on time, he takes care of the property, and unless some big issues come up, he doesn't bother you, and you're all like:

"Hmmm? Maybe we've had it TOO good for TOO long? Maybe we've been lucky for TOO long? Maybe it's our turn to be smacked upside the head to give us a reminder of the dregs of society and reality? We've had an amazing run for the past six years, but I guess it's our turn to get a harsh reminder about squatters rights, and damage to the property, and non-payment for months on end... and by the time we realize that we should've been GRATEFUL for our wonderful tenant, it will be far too late. Oh well... break out the Craigslist ad!".

See what I'm getting at?

Ask him to pay 10% more this year, then 10% more next, and every two years after that (since you didn't increase the rent at all in 6 years) but for the love of God, do NOT let this tenant go!

... and if you DO happen to choose chaos & insanity, rather than stability and piece of mind; please post your tenants number here.
I'll be thrilled to rent to him and unlike you, I won't take his respect for my property (and myself) for granted.

- owner/landlord

Sorry, typo this should have said 5%.

[Anonymous]

Anonymous wrote:You don’t run a charity. Raise rent to at least market rate. Have you even been in the house in the past few years? They probably trashed it thinking you don’t care. Higher rent means higher caliber renters. Kick out the free loader.

You're clearly not a landlord, nor have ever ever been one.

This is a troll post, OP. Don't take the bait.

[Anonymous]

There seems to be a lot of trolls on here. Always keep good tenants that take care of the place and don't brother you, they are worth their weight in gold.

I think most of the posts here are tying to get rid of the renters on their block and aren't landlords at all. You can tell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You don’t run a charity. Raise rent to at least market rate. Have you even been in the house in the past few years? They probably trashed it thinking you don’t care. Higher rent means higher caliber renters. Kick out the free loader.

+1000.

I own 14 rentals. This is a business. If you're in the DC area where rents are often in the $3000 a month range, even a 10% raise is acceptable if the market allows. 300 x 12 x 5 at 6% is money left on the table. Big time.

Inother words, that's $20,000 you left on the table.

Ah, the greedy slumlord has finally entered the chat.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You don’t run a charity. Raise rent to at least market rate. Have you even been in the house in the past few years? They probably trashed it thinking you don’t care. Higher rent means higher caliber renters. Kick out the free loader.

+1000.

I own 14 rentals. This is a business. If you're in the DC area where rents are often in the $3000 a month range, even a 10% raise is acceptable if the market allows. 300 x 12 x 5 at 6% is money left on the table. Big time.

Inother words, that's $20,000 you left on the table.

DP. Sooooooo....you have 14 rentals. We have 37. We're much more like OP than you. A bird in the hand and all that. The only time we raise to market is if we want a tenant to leave because they are a PITA; otherwise, we keep our increases in the $50 to $150 range, even for our $6k+ properties.