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Re: how much rent increase
on September 11, 2020 @08:53
I typically increase the rent $10-20 per month. The increase is low because I want to keep tenants, IF they are good tenants.
I also keep a spreadsheet on all mortgage/taxes/insurance, utilities, repairs - basically ALL expenses - that way you know exactly hot much expenses increases.
I would HIGHLY RECOMMEND increasing the rent every 12 months, even if expenses decrease. This is a good practice to follow because the tenants won't be shocked. For example, if you increase the rent $15/month in YEAR 2 and another $15/month in YEAR 3, they are more likely to stay versus if you didn't raise the rent in YEAR 2 but increased the rent $30/month in YEAR 3.
Now, there are always exceptions. For example if you have tenants who are good tenants and they wanted to move because of the rent increase, I would say forget about the increase or decrease it slightly in an attempt to keep them. If they are not able/willing to pay for any increase, I would waive the increase because they are good tenants. Besides, if they leave and the unit is only vacant for 1 month, you would need to calculate how much that will cost you in rental income. For example, I have a tenant who pays $865/month rent. If I increase her rent by $15/month to $880/month, she wants to move out to avoid the rental increase and the unit is only vacant for 30 days, you would have lost $865. If you spread that expense over 12-months, you would be losing roughly $72/month - and that is only calculating the rent loss.
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