For those with investment properties

[Anonymous]

Would you agree to a 2 year lease with no rent increase if you had good tenants? My tenants are renewing their lease and I told them that I wouldn't raise their rent when they renew. Right after I told them this, I get my new prperty assessment that has significantly increased with much higher taxes, and then my tenants ask if I'd be open to a 2 year lease at the same rent (with no increase from last year). The house is located close in with a strong rental market.

Thanks

[Anonymous]

If you were stupid enough to tell them that before having info needed to make a good decision I think you should stand by your word.

If you hadn't told them you wouldn't raise it then I think raising it a few % would be a good idea.

[Anonymous]

Do a cost benefit analysis. What are your costs of a renter transition - repainting, possible vacancy, commissions, credit checks, whatever. Divide that by 24 months. Compare to what you think you would be able to get in the rental market for a new tenant.

[Anonymous]

Op here. I was fine with no rent increase for 1 year as an incentive to have them stay when they wanted to sign a 1 year lease but then they asked if they could lock in the same rent for a 2 year lease. I guess I should have clarified that the higher taxes will occur mid year this year or after the end of a new 1 year lease.

[Anonymous]

I would not increase the rent as long as the tennant is good. Maybe once you increase it, the tenant left and you might ended up with a career tennant then u will hate yourself

[Anonymous]

Anonymous wrote:I would not increase the rent as long as the tennant is good. Maybe once you increase it, the tenant left and you might ended up with a career tennant then u will hate yourself

+1. But don't see need for two year lease. Ever. Just re up in a year and decide then.

[Anonymous]

Anonymous wrote:Op here. I was fine with no rent increase for 1 year as an incentive to have them stay when they wanted to sign a 1 year lease but then they asked if they could lock in the same rent for a 2 year lease. I guess I should have clarified that the higher taxes will occur mid year this year or after the end of a new 1 year lease.

I was the first PP. I would stick with the 1 year lease then. Perhaps as a compromise you can work with the tenants and decide what the increase for the year after that will be and put a small range in their contract (ie, 4-6% or whatever the numbers would be.)

[Anonymous]

Will they sign for the first year at the same rent like you promised, with a small percentage increase for the second year?

[Anonymous]

I own several dozen rentals. I always, always raise rent. It is very bad not to. I have agreed to a small rent increase in year two.

[Anonymous]

Anonymous wrote:I own several dozen rentals. I always, always raise rent. It is very bad not to. I have agreed to a small rent increase in year two.

Can you elaborate on why it is very bad not to raise rent?