Tips for Landlords When It's Time to Raising Tenants

One of the inevitable consequences of owning rental income property is that from time to time the landlord finds it necessary to aware tenants that their rent will be getting raised. The issue is not a slam dunk. Rent increase is a sensitive subject that greatly affects real estate owners and tenants alike for their own set of reasons. It is obvious that the tenant is not going to be pleased that they will have to pay more in order to continue occupying the unit. In fact, the tenants cannot afford to pay more. Whenever the rent increases, it is never what the tenant wants to hear.

As a result, knowingly full well how a rent increases could affect their tenants, property owners are confronted with their own fears and concerns surrounding the financial aspects of the decision. The common fear of course is that the otherwise good tenants might decide to move out and leave the landlord with increase vacancies. Further, this might be manageable for those properties which are having number of units and an increased vacancy rate for properties consisting of just few units can be financially devastating to real estate investors.

Fair Enough

Real estate agents are running an investment agency which completely relies upon rental income and sometimes having to increase rents is the only way to make it for a person to consider when rent enhances in order to help people to reduce the risk of driving out your tenants.

• Avoid Pure Greed: If the person wants to reduce more money from one's investment without rhyme or reason than the others suggestions might not be relative and one may have to simply take his chances.
• Understand your Market: If the person's market area is commonly saturated with other rentals then one might suffer a huge turnover of tenants due to a high supply to demand ratio. If the supply is limited then the opposite is true and one might not suffer any kind of turnover.
• Know your Property: How do one's rental property location, amenities and condition measure up to other rentals in and around the area? Tenants are less willing to endure the stress and cost of relocating over a normal rent increase when a person offers desirable features when compared with other properties.
• Know your Tenants: How does your property's unit size measure up to tenant needs? For example, person's increase in rent could motivate an accountant with several assistants occupying one's small office space in order to relocate to larger space. Or a single occupant in person's two bedroom unit to set off in search of a one bedroom unit.
• Watch your Competition: If similar type units are available just around the corner for less rent then one is proposing, chances are good that one will lose tenats. If person's rents are reasonably in line than probably not.

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