If you've been taking note of the Bureau of Labor and Statistics, you know that the rent index has actually been steadily increasing by about 3.6 % annually. Trends like this and other real estate matters can leave some property managers wonder, "How can I raise my rent without losing tenants?". You don't have to lose occupants and lose out on the opportunities to increase your rental income. There are a couple of tips and techniques to being able to run your house like business it is, without triggering problems.
The very first step towards raising the rent is inspecting things out. If you have renters that you value an excellent deal, you might likewise think about just grandfathering their lease at the present rate. As much as individuals may do not like having to pay more lease, having it sort of thrust upon them at the last minute is even worse.
Inevitably, if you're a multi-property owner or if you've got a lot of units, when you raise the rent there will be damaging feedback. The best method to address this is, actually resolving it. It does you no good to just raise the rent then not talk about why with those who are voicing issues. Even if you've explained why in a letter or newsletter, you might have to have a sit down. You can address this fairly quickly by pointing out expenses: taxes and fees, energy bills, custodial and other things that justify a rent boost. If you have a sophisticated notice portion in your lease, be sure you hold to that. If you've never raised the lease price, think about altering your lease to consist of that addendum for future use.
That's the most vital thing you can do when considering and executing a lease cost increase: communicate. The majority of people aren't going to be delighted at a rent boost, but you can absolutely keep the problem to a minimum if you're open and professional about the changes.