Rent Increases...best way to address?

Category: Leasing

4 replies

Original post

With the lease coming to an end in the not-too-distant future for our tenants, we are planning on increasing rent (if they stay).

What is the best way to go about tackling this? Do we give them a BIG heads up or do we wait until later? is there a specific increase that is fair for both sides? Any tips will be greatly appreciated!

Thanks in advance,

-Josh

Reply by Jaxon Patterson

My advice is be proactive. Waiting until later just makes people more frustrated in my experience. Give them some runway and be prepared for a little pushback. No one wants to pay more for anything. Delivery matters, though. And obviously (I'm sure you already know this but doesn't hurt to hear it again) make sure whatever you're doing isn't tripping over any housing laws in your state/area.

Additionally, I make it a point to build good relationships with my tenants. They know I actually care, which really helps in this situation. They know i'm not "out to get them." You seem similar from everything i've seen on here, so I think that will help a lot in your case.

Reply by Daniel M.

I think that's probably the right approach. From the property management side we try to give residents plenty of notice and explain that the increase is really about keeping up with operating costs and the market not just raising rent for the sake of it. If they've been good tenants, I'd also rather do a smaller increase and keep them than push too hard and end up with a vacancy.