Landlords: What percentage average rent increase is reasonable in our area?

[Anonymous]

I have not increased rent for 3 years since my tenants moved because we don't want the trouble of looking for a new tenants. Now with market up so is the property tax. We are thinking to increase the rent a little. Is 4% or 5% increase reasonable after unchanged for 3 years? What percentage average rent increase is reasonable in our area? Thanks!

[Anonymous]

Anonymous wrote:I have not increased rent for 3 years since my tenants moved because we don't want the trouble of looking for a new tenants. Now with market up so is the property tax. We are thinking to increase the rent a little. Is 4% or 5% increase reasonable after unchanged for 3 years? What percentage average rent increase is reasonable in our area? Thanks!

It depends - do the search, see what's available on the market, what similar property are renting for. Then decide.

[Anonymous]

You've had the same tenants for three years? If so, if they pay the rent on time and are not bothersome I would not raise the rent on them.

[Anonymous]

If the tenants are good, I personally raise every other year by no more than $50. Think about it, if you were the tenant and got a $100 or more increase, you'd start to get annoyed.

But, rents have risen quite a bit in this area in the last 3 years. So if you don't mind finding new tenants and think that it will be easy to find them, go ahead and raise it to what you want and if your current tenants move out, then you can just find new people at the price you want.

But honestly, after having some bad tenants, I just leave the good ones alone and just get the big price jump with the new tenants. Saves hassle but also could end up being cheaper if your tenants move out and then you have a month between tenants without any rent at all.

[Anonymous]

Anonymous wrote:You've had the same tenants for three years? If so, if they pay the rent on time and are not bothersome I would not raise the rent on them.

+1 Although, I did raise my tenants rent after the first year because my taxes went way up, but only by $50 per month, which worked out to be about 2%. But since then I have not raised their rent.

[Anonymous]

We had a large tax jump so I am still debating how high.

[Anonymous]

It's better to raise it a little every year like 2 to 4%. Calculate moving costs and competing rents if you want to maximize. If you don't raise rents it makes the landlord look vulnerable.

[Anonymous]

Our landlords raised our rent the maximum allowed every year for eight years.

[Anonymous]

I love my tenant and am not raising her rent, but I hope she stays.

[Anonymous]

Great tenants are more valuable than what the increase will get you. Move it up marginally, say $50, if you have to but best to leave it if it is covering expenses.

[Anonymous]

I have had 2 tenants so far. The first stayed for 4 years and the second has been there for 2 plus years. There is a difficult neighbor that lives below and I would never press fate by raising the rent. Not raising the rent and having a slightly below market rate helps me retain my tenants and also builds trust.

[Anonymous]

Rents went up from 2009 to 2013 but now have gone down a little. There are a lot of new rentals on the market, so now is not a good time for a five percent increase.

[Anonymous]

Anonymous wrote:It's better to raise it a little every year like 2 to 4%. Calculate moving costs and competing rents if you want to maximize. If you don't raise rents it makes the landlord look vulnerable.

LOL vulnerable to what? +1 for leaving good tenants alone. A one month vacancy can easily eat up two years of a marginal increase.

[Anonymous]

In the longterm, not raising the rent can be a disservice to not only the landlord, but also the TENANT. If a tenant stays in an apartment for an extended period of time, without any rent increases, when the time comes for them to move out, they may be unable to budget for a normal market rate at another rental.

[Anonymous]

Does your bank increase your mortgage on an annual basis? How would you feel if it did? The rent should be locked into the amount that's on the lease. Raise the rent after the tenant moves out.