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As a landlord, you’ll likely find yourself in a position where you have no other choice but to raise the rent.

Not only will dramatically raising your rent equal a one-way-ticket to tenant loss – it will destroy your reputation as well. Only raising the rent in small increments like 10% or less each year will ensure that your tenants have time to adjust accordingly. If all is going well with your tenants (and with the economy), they will likely have a higher income as the years go on to meet the market as well.

Raise the Rent only Slightly Each Year

Test a Higher Rent with New Tenants First

While your current tenants will be more reluctant to accept an increase in rent if they’re accustomed to a certain amount already, new tenants won’t have this bias. If you’re successful at finding new tenants of a similar demographic in spite of the new rate, you’ll know the rent is still at a responsible and marketable amount. The best part is, if you do find residents willing to pay a higher rent, you won’t be in dire straights if your current tenants can no longer afford it.

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Know the Area and Your Competition

What specific aspects of your property make it appealing for your target area? Is the location itself more desirable than other nearby areas? Are these aspects a potential incentive for people willing to pay more per month? What are you competitors rental rates? Asking yourself these types of questions, as well as doing thorough research, will help you get an advantage over other local property owners, as well as provide leverage when breaking the news about raising rent to an existing tenant.

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Be Upfront in Your Lease Agreement

This one can not be emphasized enough. Before you take on any new tenants, make sure you include a stipulation about your intention to raise the rent upon renewal. This will not only prevent the possibility of legal trouble, but will also quell potential tension with your tenants, since they expect an increase ahead of time.

Rely on MGR for Your Property Management Needs

If you choose to work with us, our complete array of services will give you an unparalleled advantage. Whether you need to outsource all of your current tasks or only a certain amount, our large staff of seasoned professionals will be delighted to handle all of your property management needs.

Since reliable, honest tenants are difficult to come by, we understand that it can be a nerve wracking experience to increase their cost of living in any way and potentially lose them altogether. However, considering the nature of our competitive markets, raising the rent is usually necessary.

In light of these factors, how can you raise rental rates while still maintaining a positive relationship with your tenants? MGR has you covered. Read on for our essential tips on raising rent while not stretching your tenants too thin.

How Can I Raise Rental Rates & Not Lose Tenants?

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For 35 years, MGR Property Management has been the most trusted choice in The Inland Empire, Los Angeles, and Orange County.

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Attracting & Screening Tenants

Vetting & Hiring Vendors

Understanding the Law

& More Essential Management Tips

For 35 years, MGR Property Management has been the most trusted choice in The Inland Empire, Los Angeles, and Orange County.

If you choose to work with us, our complete array of services will give you an unparalleled advantage. Whether you need to outsource all of your current tasks or only a certain amount, our large staff of seasoned professionals will be delighted to handle all of your property management needs.

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