Author Topic: Rent increases  (Read 1798 times)

umterp1999

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Rent increases
« on: August 27, 2013, 07:56:39 AM »
How do you handle rent increases?  In my state (maryland) there are no limits to how much you can increase year to year, though the state recommends no more than 5%.  My tenants have been in my house for about 8 years, and are good tenants.  Rents are on time, and the property is in good shape when I have been there.  Sometimes they can be a headache because they call about little things, but I'd rather have that honestly.   As a result I only tend to increase 2.5% a year.  Should I be raising the rent more on them?   The rental market for the neighborhood is pretty healthy.  Washington DC suburbs, near good schools, bus route, shopping/dining, walking distance to major hospital.  Lots of improvements over the past 5 years. 
« Last Edit: August 27, 2013, 07:59:03 AM by umterp1999 »

arebelspy

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Re: Rent increases
« Reply #1 on: August 27, 2013, 07:58:35 AM »
1) It all depends on what the market will bear.
2) Good tenants are worth keeping.

Previous discussion that may help you: http://www.mrmoneymustache.com/forum/real-estate-and-landlording/why-would-i-raise-the-rent/
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Another Reader

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Re: Rent increases
« Reply #2 on: August 27, 2013, 08:10:26 AM »
With good, long term tenants, I keep the rent a little below market.  The cost of a vacancy is much higher than the loss of a few dollars in rent.  For the most part, it really isn't a loss, as the property is usually due for paint and possibly carpet if they have been there for a long time.  The property would rent for less "as is" if they moved, or I would have to spend a significant amount to get top dollar.

AlmostIndependent

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Re: Rent increases
« Reply #3 on: August 28, 2013, 11:21:46 AM »
1) It all depends on what the market will bear.
2) Good tenants are worth keeping.

This.