We just signed a lease and the last question by the tenant was -----will you raise the rent??? No one has ever asked this question. What do you make of it? This person has good references, lived for 9 years in a single family home. She is moving because landlord is selling the home due to wife's cancer.

It's a legitimate question.

As with many here, your (honest) answer would be yes.

I rarely raise the rents of existing tenants. I have not found that the market rent has gone up very much, if at all.

My costs don't go up a lot over time. The property taxes are pretty stable, the mortgages are fixed, the utilities I have to provide are not very variable. My LL Insurance is the thing that climbs the most; well, maintenance and repairs have gone up a lot!

I prefer to celebrate a tenant's anniversary with a gift card to a local restaurant instead of with a notice of rent increase! Longevity is the key to being successful. I have many tenants who have been with me for a decade or more; some are still paying what they paid under the initial lease.

The question from the tenant is legitimate, and I would be thrilled to have a tenant looking for a long-term stable LL-T relationship!

I usually use the opportunity to jab at costs and esp taxes. I have a rule of no political signs on the property but often find some tenants trying to place them. Usually for someone that wants to raise property taxes so we have remedial French taught in Kindergarten etc,etc.more costly rules for landlords. and so on.

Tenants feel they are insulated to these costs.

I have even been known to say , We'll have to see if that budget gets approved or if Joe Blow gets elected because he wants to do tax classification and we will have to pay more taxes.

At least it gives them an idea that if my costs go up, so will theirs.

It's a good question that I myself would ask. Indicates forward thinking which implies responsible.

One year my taxes went down considerably (due to the crash). I reduced rents because my costs went down. The good will was worth it. I have one seven year tenant who still tells every repair person who I've ever sent there the story of when I lowered his rent.

I tell people I try to hold down expenses for both myself and our residents! I tend not to raise the rent much on existing tenants, as I try to get just under top dollar at the time I rent it the first time.

At turnover, I raise them to the incoming residents if I can.

There is a possibility the rent will go up because we have no control over who will be increasing charges to us-- especially the state and county. Increases will be based on those increased expenses. People are use to blaming others so deflect it away from you the LL.

Mike45 "very rarely raise rents"? Longevity, in my opinion, is not the key to profitability-- increasing cash flow is. If you have LOOOOOOONNNNNGGGGGG term tenants your not raising the rent enough (ten year or more you've had the same tenants?). Gift cards???

Gift cards and no rent increases -- whats not to love?

I rent mostly to students. Sometimes rising juniors want to rent for two years. I tell them that I often renew leases for a second year, and usually at the same rent for the second year, BUT that "I make that decision only at the end of the first year depending on how 'happy' I am with how the year went."

I rent month to month only. I usually get close to top dollar when I get a new tenant so I don't plan on raising rents at the any particular time. In fact, in one M2M agreement, I even put in a clause that I would not raise the rent for at least a year at their request, for their peace of mind. I do explain how my costs are related to their rent increases.

I tend to raise rents for PITA tenants, and raise them high enough to make it worth my while to put up with them. If they leave, that would be fine.

Glad I re-read the post before I submitted (I thought you were looking to purchase the SFH they were renting) - man, I think I need to go back to bed.

Anyway, in my lease it states there is an automatic rent increase with an auto-renewal. Sometimes I raise the rent, other times I don't. It depends on the tenant and if my own expenses went up. I am truly amazed that in one property my expenses actually went DOWN a few years and this last year it was FLAT. Most likely I will be raising the rent next year though just because the people have been in there for going on 4 years now and it's just time to do it.

I don't think I've been asked that question at lease signing but I'm wondering if these people are either maxed out (maybe for you they are "fine" but for them they are feeling maxed out - due to doctor bills, trips, etc that you may not see but they are fully aware of). For them, they may be thinking - we can stay here a year at this price but if it goes up - we may need to move in a year. Who knows - maybe they weren't paying a lot before and then they ended up raising the rent on them.

I hear quite often from prospective tenants "owner is selling" - most of the time I don't believe them only because many times the owner DOESN'T want the tenant to leave since it is income (unless the tenant isn't cooperative, messy OR their agent feels that the place is better shown vacant).

I have raised the rent several times on my tenants, but they have been there since 2010. Their rent started at $870 and is now at $900. There were a couple of years that I did not raise their rent.

I won't be raising their rent this year either, and may even reduce their rent. I refinanced the property & my mortgage payment went down. I do not mind sharing that cost reduction wiht my tenants. But! They do not know I am considering lowering their rent because I won't do so if they pay late at any time between now and then.

I love how someone here (sorry, can't remember who) approaches the tenants and tell them that due to rising costs, the rent will have to go up, and asks them what they could afford. They claim that the tenant usually comes up with a higher figure than they had in mind.

I'm trying that the next time!

A very experienced LL told me when I bought my only rental that it is wise to raise the rent a small amount each year. If not, the tenants think you do not need the $.

I raise the rent after the first 18 months and every 12 months thereafter. I do not like to do the rent increase on the anniversary of their moving in. The rent increases are very small. Usually $25 to $50.

I raise rent on year when they are happiest and most willing to accept the raise......just as they are signing the lease for year one.

The space in my lease has enough room for me too write down year 1 - $785, year 2 - $799. The tenant is happy to be signing the lease and getting keys. The will sign if the increase reasonable and I typically only do about a 1 or 2% increase to cover the increases in the cost of doing business.

IMO, Tenants are more in tune with the cost of doing business than we are as they have less expendable income . We need to be able to transmit the message about the increase in doing business. For me, its just easier to send out a short card reminding them that the new rental rate will be $799 starting on month 13.

Most of my tenants are happy and willing to pay that extra 1-2%....but make no mistake about it - they are set up to be happy. At month 9.5-10 they are given a customer satisfaction survey. I want to know what is bothering them and correct these issues, before they get a rent increase notice. Even when they get the increase notice, it includes a rentometer.com rental report for the area.