 Rasing Rents (by Don [TX]) Apr 19, 2018 6:56 AM
 Rasing Rents (by S i d [MO]) Apr 19, 2018 7:21 AM
Rasing Rents (by Don [TX]) Apr 19, 2018 9:27 AM
Rasing Rents (by fred [CA]) Apr 19, 2018 9:43 AM
Rasing Rents (by elliot [RI]) Apr 19, 2018 10:12 AM
Rasing Rents (by myob [GA]) Apr 19, 2018 12:23 PM
Rasing Rents (by LisaFL [FL]) Apr 19, 2018 12:36 PM
Rasing Rents (by Sandy [CO]) Apr 21, 2018 11:24 AM
Rasing Rents (by Don [TX]) Posted on: Apr 19, 2018 6:56 AM
Message:
I have several units that I need to raise the rents on, all units are single family homes and well below market. Im thinking going $100 across the board and still be just under market in the area. In speaking with a friend he thought that might be to much at once but they all are doing very well and have been skating for some time on cheap rents. All SFH with nice yards and garages. --161.226.xxx.xxx |
Rasing Rents (by S i d [MO]) Posted on: Apr 19, 2018 7:21 AM
Message:
If it were me, I'd thank my buddy, buy him a drink, and raise rents to market value or maybe a few bucks more. If your view of market rent is correct, why would tenants move from your house to another house where they are paying the same amount?
I don't know what "several" means, but $100/month = $1200/year lost rent. x10 units = $12,000. That's a lot of $ left on the table. --173.17.xx.xx |
Rasing Rents (by Don [TX]) Posted on: Apr 19, 2018 9:27 AM
Message:
Thanks Sid im of the same opinion.... --161.226.xxx.xxx |
Rasing Rents (by fred [CA]) Posted on: Apr 19, 2018 9:43 AM
Message:
It's OK to be a little below the market, for good long term tenants.
However, being way below the market even after a recent raise, is simply "robbing yourself".
On the other hand, lower rent income = less taxes... --99.59.x.xxx |
Rasing Rents (by elliot [RI]) Posted on: Apr 19, 2018 10:12 AM
Message:
I left money on the table, but didn't feel like "robbing myself".
case in point, I purchased a 3 family 3 and 1/2 years ago. One tenant was paying $750 then, we raised her along the way to $925 and just raised again to $1,025. If you go by percentage, that is a lot already. The same unit can be rented for $1,400 at market rent. Thats more than $3000 a year left on the table..
I can't fathom who can afford the skyrocketing rents in my market. That's one reason I took so many S8.. Cos that is the only category that can "afford" the rent for B- C type properties. I do raise all the way to market level for "undesirable" tenant.. For the ones who are no hassle, I am willing to leave money on the table.
My wife and I like to maximize each property's potential by finishing basement and attic etc to generate more revenue.. When I see hardworking honest people who can't keep up with the rapid rising rents, I am willing to let go the profit..
Your mileage varies.. do what is right for you.. --144.160.xxx.xx |
Rasing Rents (by myob [GA]) Posted on: Apr 19, 2018 12:23 PM
Message:
Have you heard this saying: "strick while the irons hot"?
If you can't raise rents now-- in this job market-- then you'll never raise them. --99.103.xxx.xxx |
Rasing Rents (by LisaFL [FL]) Posted on: Apr 19, 2018 12:36 PM
Message:
I've always been lower than the competition and like to keep things as affordable as possible for high quality tenants.
But if you are too low, which I'm guilty of being in a few cases you are robbing yourself. My costs go up every year; insurance, taxes, major capital improvements. The cost for a new roof isn't going down each year or staying the same, it's increasing.
--75.89.xx.xxx |
Rasing Rents (by Sandy [CO]) Posted on: Apr 21, 2018 11:24 AM
Message:
My accountant was berading me for not raising rents, which I have started doing at least a minimal amount every year, that way it’s not too much at once, and also the tenants get used to it.
I had left rents as they were as I had long term good tenants, and there’s something to be said about that. If you consider a one month vacancy is about the cost of the rent raise... if the raise is $100/mo to total rent $1200/mo, and if they move you may lose 1 month or more in vacancy, and possibly getting a poor quality tenant. All things to consider.
It also depends on your market vacancy rates, will you be able to fill it quickly if they move?
The other thing to consider is timing. If they move, think about the time of year that you want a possible vacancy. I raise rents so vacancies happen in the spring/summer so I don’t have to pay heat or shovel snow. --107.2.xxx.xx |
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