While you might not like the idea of doing it, and your tenants will not exactly be thrilled at the prospect, there comes a time when you need to raise the rent. Landlords cannot simply raise the rent whenever they choose; they have to give the tenant proper notice, and they need to make sure that the new rent is still in line with the rest of the rents in the area. If they are too high, you can expect that the tenant will likely put in his or her 30-day notice. If you want to raise the rents and make sure that you still keep your tenants, you will want to remember the tips in this article.
Should You Raise the Rent Right Now?Before you decide to raise the rent, you have to make sure that it actually makes sense. Do your research and examine the current rent prices in your area for homes or condos that are comparable to yours. Do not use just a single source to qualify the rental increase. Look at a number of different rental sites, and make sure you are actually comparing units that are similar to yours in location, size, and amenities. When you do your research properly, and raise the rent to the average price in the area, your tenants will see that staying where they are is actually a better option.
Give Them WarningA rental increase is never welcome news for tenants, so make sure you give them time to adjust to the new price. While many recommend providing a 30-day notice before raising the rent, you may want to opt for a 60-day notice instead. This lets the tenant get a bit more time to grow used to the idea of paying more rent. You should also send out a reminder in the weeks before the new rental price takes effect just to remind them of the increased price. If they are currently on a lease, let them know that the new price will take effect when, and if, they choose to renew the lease.
Consider a RewardWhile not all landlords will want to take this action, offering some type of reward to the tenant for staying on and signing a new lease could help soften the rental increase as well. For example, you might offer to have the carpets professionally cleaned or even upgrading one of the appliances after they sign the new lease. This shows them that you care about the property, shows more of a justification for the rent increase, and provides them with more of an incentive to stay in the unit.
Answer QuestionsTenants may have questions about the rental increase and they may even want to know why you are increasing the rent. You do not have to go into the details, but you can tell them that the costs of maintaining and paying for the property are higher now. Raising the price of the rent helps you to pay for those costs and still provide the same quality maintenance and attention that you always have.
Have Someone Else Do It for YouMaybe you do not like the idea of telling the tenants that you are raising the rent. Maybe you don’t like all of the different tasks that come along with being a landlord. Fortunately, you can make things quite a bit easier on yourself by working with a Scottsdale property manager. The manager can take care of collecting the rent, as well as notifying the tenants of when the rates increase. Since they are so involved in the rental market, the Scottsdale property manager can also help you determine the correct rental rates.