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FL rental- rent increase
by L
on February 20, 2021 @21:45
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Hi all,
I am a new landlord to a rental property located in Melbourne, FL. When I took over the property (inherited) it had been managed by a PM Co, so the tenants were already in place. I didn't increase the rent last year, mainly due to the pandemic. But their lease is coming up for renewal in June and I am seeing that the FM rent for similar properties in the immediate area are 1300-1500. They currently pay 1100. How do you handle a rent increase, so it is fair to both. I was thinking an increase of 100, but it is still below fair market rent.
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Re: FL rental- rent increase
by Garry
on February 21, 2021 @11:36
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First of all, any rental increase is never "fair" to a tenant. Unless you have done things to improve your property, and the tenants living conditions, all the tenant sees is having to pay you more, for the same living conditions they have had for maybe several years.
You want to raise their rent approximately 9% ($100), only because, in your opinion, they are paying you way below "fair market rent". Whereas that may be true in your mind, the T simply thinks " What do I get, for what I pay for"? Now, if you haven't made improvements to the property, you may be able to increase a T's rent by 2-3% each year, by telling the T your taxes, insurance, upkeep, or (utils if you have to pay them), have gone up.
How well do you know your tenants? Can they afford your rent increase, or do you risk them moving out because of it. Have they been "good" tenants-----paying on time and keeping up your property ? Once you give them notice of an increase, they will check the open market out too. They may find out they will still be paying less rent (with your increase ) than what they see on the open market. Or they may move.
I realize I have not given you a specific answer, but only given you things to think about.The best thing you can do, is in the next 2-3 months, get to know your rental market SUPER WELL, so you can justify any increase you decide to give.
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