Rent increase

[Anonymous]

I’m very risk averse, but if I had only one rental I’d be fine with a good tenant who paid below market. You could end up with a terrible tenant who stops paying rent and trashes the house, and it could take six months or longer plus a huge legal bill to evict them.

[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

Don't increase 30% all at once if you have a good tenant. Increase 10% every year for the next three year, and let them now that this is your plan, that way renter knows whats coming up and can adjust their situation to upcoming expense changes. By end of year 3 rent has probably gone up even further and you're below-market rent will still make it attractive for renter to stay put.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

You are lambasting the poster who used my supporting post of $100 per month annual increase, which incidentally is the same amount you actually raise rents by. Op lost $20K. That is a huge mistake.

Correct. I'm the 14 guy. PP is an imbecilic troll. Imagine telling your tenant that you're raising rent 0.8%? Because that's what they claim on a 6K rental. In reality they are really just some poor renter pissed about being a poor renter.

Takes one to know one, I suppose.

[Anonymous]

Anonymous wrote:This is easy. Raise the rent, but by just 5-10%, so they won’t leave. Raise the rent by small amounts yearly after so that it won’t be all at once.

This is the answer.
I don’t understand the debate.