How to Raise Rent in Your Property Without a Problem
As a landlord, raising rent on your property is beneficial to you turning a profit, but it can be hard thing to present to your tenants. Your longer-term tenants may be OK with the raise, while some newer tenants may be bothered by the increase. With a rent increase, landlords run the risk of losing some tenants.
Many tenants don’t realize a landlord isn’t just raising the rent to pocket more money, but to cover increasing insurance costs, taxes, and inflation. Likely, many landlords in the surrounding area are also raising rents. Many times, landlords have no choice but to raise the rent in order to continue to properly care for the building while running a successful business.
As a Jacksonville property management company, our team at Quest Real Estate, LLC have managed many properties throughout the years where landlords raised the rent, so we know and understand the reasons and explanations as to why the increases occurs. With realty and industry experience, many landlords turn to our team at Quest Real Estate for expertise in how, and when to raise rent.
With years of experience helping landlords with rent, we wanted to share some ways a landlord can raise rent without problems.
- Set expectations – Let future and current tenants know that rent increases are a possibility, whether it’s yearly or every other year.
- Establish reasonable rent increases – A landlord’s rent increase is likely reflecting an increase in costs, but a landlord should also compare his/her current rent to those around in similar rental properties. A landlord should make the rental prices competitive and at the same pace as similar rentals in the area.
- Communicate effectively – Since you’re delivering “bad news” to your tenants, you may want to call them or set up a meeting instead of sending an email or letter. A landlord’s personal approach can lead tenants to having a better understanding of why the increase is occurring. By hearing a landlord’s voice or seeing his/her mannerisms, a tenant will also realize that the landlord isn’t trying to scam them.
- Upgrade the building – Whether it’s a paint job, new flooring, new appliances or a security system, new upgrades, from time to time, can help justify higher rent in the future. A landlord can also build and gain the trust of tenants by asking what upgrades they would like to see in their units or building. These upgrades both please the tenants while enhancing the value of the property and the property’s marketability.
- Raise the rent incrementally – It will feel less harsh on the tenants to raise the rent by small percentages each year than to raise the rent to catch up all at once. With small increases, the landlord is keeping the rent consistent with current market levels while trying to keep numbers that are reasonable and manageable for tenants to handle.
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Raising rent can be a tough subject to address with tenants, even if they expect to occur. Quality tenants will understand the price increase, especially if you communicate with them, upgrade the building, and are competitive with other properties in the area.
If you landlord who needs help with rent price setting and increases, you should get help from a property management company. At Quest Real Estate, LLC, we have years of experience working with tenants and establishing rents and increases for properties. We are familiar with the market and know how to property set the prices and increases for your residential or commercial rental property.
Our Jacksonville property management team develops a close relationship with tenants so there will be fewer issues throughout their time renting from you. We know how to talk to tenants and get you quality tenants who will stay with you for a long time.
As a property management company, we prepare leases, have 24-hour emergency maintenance, collect rent, set rental prices, communicate with tenants, handle disputes and more. We will work with you to find ways to better serve your tenants and attract new ones.
If you’re looking for a Jacksonville property management company to manage your property or find you tenants, let Quest Real Estate help you!
Contact our team at Quest Real Estate, LLC, by submitting our contact form. If you’d like more information on Jacksonville, or information on homes for sale or rent here in Jacksonville, Fl, call us at 904-373-9171.