Longtime thirty-something tenants just called, basically begging for us to lower the rent so they can stay in the house. Mother is no longer helping to make the rent payment, so they are claiming they can no longer afford it, but assured us they "really want to stay."

Because they have kept the place pretty clean, I have kept their rent just under market rates. Both of them work, but have at least three days off each week to add a part-time job or earn extra money. I guess it's just easier to ask me to help than to get a few extra work hours...

BTW, they "are willing to help me with my rental properties in whatever I need done." I doubt that it a smart option.

Observations: Tenants were smokers for years. I think they may have given up the cigarettes by now. They drink entirely too much. They have two used vehicles I believe making payments on both.

I'm sure I'll just get back to them and tell them, "No, sorry. I can't help you," but just wondering how you all would handle this.

I'm glad to see that you are not just a greedy landlord and are actually thinking about taking this into consideration. On a single-family home, I would consider this and have done this. I also have done it and multi units, but I rarely do that, because I don't want the word spread.

Think about it from my business standpoint. How much of a vacancy are you going to have? How much turnover cost? I would ask him what they were thinking as far as a reduction and work up from there. If they're paying 1000 now and want to reduce it to 900, split the difference at 950 and have them sign another year lease.

Someone on here stated one time they way they responded to that question (although I think it was at the looking stage, not a current tenant). They responded "Would you be willing to take a $1/hour paycut from your job?" When they say no, explain to them that's what they're asking you to do. I tried this one time with a prospect and they hung up on me. I figured that would be the reaction, so it didn't bother me. With a current tenant, it might be a different story.

No.

They are already under market rent. You are in Oregon and whatever you drop the rent to is going to be your legal rent level.

They have some days off and there are plenty of job openings going begging in Oregon for them to make up the difference.

If you want to help them out, you can tell them no reduction but that you were planning on raising the rent this year and are willing to postpone that for a year to help them out.

It all depends on your market. If you expect to easily find a new tenant with equal attributes, then you don't need to lower the rent for this tenant's convenience. If you do anticipate difficulty to re-rent, then you need to weigh all the factors (inconvenience, possible prolonged vacancy, need to settle for a less desirable tenant, cost of turnover, possible increase or decrease in rent) in deciding if these tenants are worth making a concession in order to keep them.

OR has already brought in rent control, although a relatively liberal scheme. But if you are too greedy, then the present controlled raise of 7% + CPI may turn into a more realistic rent-stabilizing limit that may seriously cramp your landlord style.

Wow, you grow em right in Oregon. Mommy cut apron strings at last and now rather than buckle down, grow up, and do what they have to, they want you to help. Millennials are a breed apart. I wonder what their monthly smartphone bills are?

You talk to your tenants by phone, you allow smoking, and you know WAY too much about your tenants.

I'm sure that all played into their request. They probably see you as a friend.

I would reply with, "I'm so sorry, I really appreciate your being my tenants, and I haven't wanted to say anything because I understand your challenges but I've already been subsidising the property for some time (under market but don't specify) and I can't rent any lower and cover the taxes, insurance and mortgage. In fact I really need to increase the rate soon. (Pending rent control.) Maybe you could find a second job?"

And with the pending rent control you may want to broom 'em and get new tenants in that can be trained for regular increases.

This reduction, should you grant it, will only be the start, not the end of the situation.

Basically you have two choices:

1. Give them an additional discount on an already discounted rental, give them enough time to struggle to pay it, keep lowering it, offer payback program, wait for all that to fail and debt to accumulate, then evict. This option has no benefit to you whatsoever, and you'll be hated once you reach a point that you won't discount any further.

"Longtime thirty-something tenants just called, basically begging for us to lower the rent so they can stay in the house."

Wow, this sounds familiar. Except our tenants wanted a year of FREE rent.

They even threw in the "we'll fix up your house for you" carrot. As if I'd allow that.

NE that was nice that a LL who wants to get rent up is GREEDY. Nice that as a business renting property he's taking less for than he should. Boy oh boy! some of you are really winners. With That said. JB your not in the make money business from what you posted. Your not in the make money from your rental business either. Long term tenant-- thirty -- is that 30 years as your tenant? Let's hope not? Apparently they don't work full time only 4 days a week-- gee isn't that nice-- they work 4 days a week so you can work 7 to SUPPORT THEM. They are laughing it up -- smoking 200.00 cartons of smokes a week X's 2 and -- oh yea they stopped drinking-- that's a joke. Oh but they help you on rentals-- whoop dee doo!. Is that while they're drunk?

Here's a reality check-- just sign the deed over. I will bet your quote unquote "just below market rent" is smoke to.

even while cruising i keep myself updated on this site--.

OH yea of little faith. FYI I get free internet with our cruise status. SOMETIMES i EVEN SNEAK IN A POST OR 2 FROM FAR AWAY LANDS -- AKA MX.

NE can I mention turn over cost and my take on that? We move out residents pretty often-- almost always because they broke the lease or have late or skip out. That doesn't really bother me because I know they're going to leave a mess-- it's natural for them. So most repair is covered by there deposit and the amount we charge and they have agreed to pay at move in time should there be damages. Most of the repair bills (aka upgrades) are in the 8 to 900 dollar range with 4 to 5K range in missing rent. Dep's are in the 1K to 1,200 range while some are 2K.

Yeah. I must say I was not taking the rent control aspect into it. I have been giving them annual increases but rents we're increasing a little faster.

JB I love your posts and respect your take on things. Your rent is 7% below-- sorry --- but be the trendsetter and get it at 10% above with nice shiny new place. Nothing says LL's here have to be below rent averages. It's worn like a badge of honor-- and people brag on it.

Upgrades and updates on past tenant. As tenants are rotated through year after year pretty soon-- EVERYTHING is new and on previous tenant's.

Turn time is negligible also since they haven't entrenched themselves in your unit.

Our last tenant left on Monday paid the whole month $875.00 - house was rented with Dep on Tuesday the 12th (2,000) and just signed lease at 3pm today with 536.00 prorated rent. new rent is 950.00. We'll be making an extra 1K per year from last years rent. So no fear in increasing.

As experienced LL's how long does it take to flip the place when tenant is only in there 1 year? Repainted inside in 3 hours. Cleaned - which we charged tenant for 2 baths at 155. ea. kitchen 160.00, inside windows at $5 ea times 11. Repaired that Botched tile job 600.00.

Over the years my "partners" always complained that I was too soft and always allowed tenants to walk all over me with properties I owned by my self! Not true. Instead of having 30 vacancies at the same time, I worked with tenants for my benefit by allowing short term discounts or late payments.

Then several of "our" long term tenants renting single family homes couldn't even afford their "lower than market" rents. So I told my partners, who owned an equal share, "we're going to have to get rid of these tenants and then re-hab the property to put it back on the rental market".

My partners cried, "I can't afford to pay my share of an entire remodel. Kitchen, bathrooms, interior and exterior painting, new roof, wood flooring and window treatments"! I mentioned we also had to replace the windows and air/hearing system.

INSTEAD they wanted me to "Work it out" and keep these tenants to save them the expense of a turn over!

Count me as another one sitting at the increase table, guide them where to get boxes before you discover the deposit is already too low from previous rent increases, inspect now for damages then Bill next month rent cycle.

JB OR that's my point exactly. We LL's have been scrapping by for years because people were hurting and we got lenient.

I just talked to the tenant again this evening. Told them we would not be lowering the rent. Stone silence on the other end. I think she had already banked on it.