not raising rent : ezLandlordForms

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Christine C

started a topic over 12 years ago

I plan to renew my tenants' lease this Summer and we will be entering into our 6th lease. I have not raised the rent since the 2nd lease and do not plan to raise it this time as I believe the rent is still fair market value. Are there any downsides to not raising the rent each year?

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Karen S

said over 12 years ago

The downside would be making less money.

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Valerie C

said over 7 years ago

The down side is that when you finally do decide to raise the rent the tenant is so use to paying the same rent that they may find that it is unfair since you have never raised it before. But if you say you will at-least raise the rent by up to 5%, for example, they will expect a raise but be grateful if you don't. Also when you finally do raise it nothing can be complained about.

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Stan M

said over 7 years ago

I believe rents should always be increased annually. There is usually a rent range depending on location, # of bedrooms, condition, etc. that will allow you to increase rent. You also need to take into consideration repair/operating/property tax & insurance expenses. Labor/material cost increase annually. Its easier for tenants to budget small monthly increase vs a large one.