Landlord looking for rental advice - Landlord Forum thread

Landlord looking for rental advice by Anonymous on March 4, 2012 @17:21

To increase rent and renew or not to increase rent and renew. That is the question.

I have a couple of under-rented properties that have tenants who don't react well to even the smallest increase.
Each year the renewal is a major ordeal. I almost don't want to rock the boat and let them expire, but then I am letting them win. Each of these mint homes is about $350. below what comparable ones are going for.
Why did I rent them so cheap? A few years ago, I was desperate in the winter time and couldn't find any tenants with decent credit, so I reduced the prices for a fast rental.

I don't really want a vacancy, but what would you do?

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Re: Landlord looking for rental advice by Lisa (NY) on March 4, 2012 @17:35	[ Reply ]

If you can afford it, why don't increase the rent now, or in April ? Is the lease month to month ? If so, yes, I would increase the rent by $150 for the coming year, with a one-year lease and the deposit accordingly. If they say they will go, fine : let them go and try to have a better tenant : it's a good time.

Re: Landlord looking for rental advice by Jake on March 4, 2012 @17:41	[ Reply ]

Are your places $350 below what others are asking or what they are actually renting for. If you raise the rent by a significant amount you will risk a vacancy. One or two months vacancy will wipe out your increase. And, you may get new tenants who do not know how to pay or take care of the place. Raise the rent $50 per month each year and let it go.

Re: Landlord looking for rental advice by NY-LL on March 4, 2012 @18:47	[ Reply ]

The reason a landlord asks the questions about rental increases is because they know and believe the premises are below market. In your position, the premises should be advertised for rental with an anticipated vacancy date of two (2) months. Prospective tenants generally begin the search a few months before intended move. Since the current tenants do not respond well to rent increases, advise them that "You are aware of the discomfort and inconvenience of increased rent and would like to provide the opportunity to find a new apartment in advance of the rent increase." Hopefully, this will place both parties in a position for reasonably discussion about the move or the rent increase. ALWAYS maintain the rent at the fair market value!

Re: Landlord looking for rental advice