There comes a time in nearly every landlord’s life when the amount of rent being charged to the tenants should be increased. But, just like with most any other product or service, “buyers” (or in this case, tenants) aren’t typically happy when they are asked to pay more. This is particularly the case if they’ve been paying a set amount for a long period of time.
So, what is the best way to go about notifying your tenants about a rent increase?
There are actually a couple of solutions. One strategy is to send notice of the rent increase in a letter, at least 60 days before the lease is up. Going this route can give your tenant(s) time to determine whether they want to remain in your property and pay the higher amount, or alternatively to seek another housing option.
Another method is to automatically build in a small increase in rent each time the lease is renewed. In many cases, tenants will actually expect the amount to go up. With this in mind, though, be sure that you keep the increase small – for instance, in the $25 to $50 per month range, rather than $200 or $250, as this could end up scaring your tenant away.
In some cases, having a good tenant sign another year’s lease can be better than raising the rent at all (and running the risk of your property sitting empty while you look for a new occupant).
Dealing with rent collection, as well as with the day-to-day maintaining of your investment properties, can take up a lot of your time. If this is something you’d rather not deal with, though, there is a viable solution. That entails partnering with a property management team.
If you own rental real estate in Orlando and / or the surrounding Central Florida area, and you’d like more details on how an experienced property manager can help, just give us a call today.