Author Topic: Rents: To Raise or Not to Raise?  (Read 1213 times)

JG in Hangzhou

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Rents: To Raise or Not to Raise?
« on: October 08, 2016, 06:27:22 AM »
Living in China.   Large house in Maine.  Good tenants, who put up with getting repairs done, sending me bills.  Taking care of routine maintenance. Maintain the lawn and garden reasonably well.  They've paid the same, reasonable rent for about 5 years. 
Would I be crazy to raise the rent?  Would I be crazy not to raise the rent?
What do you think?

radram

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Re: Rents: To Raise or Not to Raise?
« Reply #1 on: October 08, 2016, 06:47:43 AM »
Living in China.   Large house in Maine.  Good tenants, who put up with getting repairs done, sending me bills.  Taking care of routine maintenance. Maintain the lawn and garden reasonably well.  They've paid the same, reasonable rent for about 5 years. 
Would I be crazy to raise the rent?  Would I be crazy not to raise the rent?
What do you think?

Your first 3 words would be the biggest factor for me. Are you in a position to get new tenants, or start to be more involved in day to day operations if they now pay too much rent to do it?

Your 8th and 9th words seal the deal for me.  Good tenants are like gold to me.

You must be meeting your expenses or you would not have kept the same rent for 5 years.

We live 1.5 hours from the property.  Not China, but still way too far for a light bulb, etc. I have never raised the rent on a tenant.   I always offer to keep the same rent in exchange for another 1 year lease.  Provides stability for them and me.  Longest stayed for 7 years. Raised the rent to market values between tenants.  2 months of no rent in 15 years and it paid for itself 1.5 times over.  Another $50 a month means NOTHING to me compared to a well kept property and home.

ender

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Re: Rents: To Raise or Not to Raise?
« Reply #2 on: October 08, 2016, 10:14:48 AM »
Your tenants are basically being your property management company for free.

They seem like perfect tenants, at face value.

Goldielocks

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Re: Rents: To Raise or Not to Raise?
« Reply #3 on: October 09, 2016, 10:47:13 PM »
Easy.  Raise the rent as part of an "annual" rate increase, then comp them a half month free after another 3 months with you, as a thank-you for being such great renters.


DeanW5

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Re: Rents: To Raise or Not to Raise?
« Reply #4 on: October 10, 2016, 04:47:35 AM »
Yes, you can raise the rent. Talk to your tenants and explain them the reason why you’re playing to increase it.  Also check out  law about how much time is required to notify a tenant before a rent increase.

Enigma

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Re: Rents: To Raise or Not to Raise?
« Reply #5 on: October 10, 2016, 05:44:44 AM »
I would not raise the rent...  Keep it the same.

You would be crazy to raise the rent.  They are doing property management, maintaining the property, maintaining the lawn, garden, etc.  A property manager will charge you around 10% of your rental income to do everything you stated.  If they are willing to do all that work...  Nothing is to say they will not be ready to move out and buy their own place.

Would you really want to take on the headache of pissing off the current tenants and assuming property management?  Sounds like everything is working out exceptionally well.  At this point raising the rent just sounds like greed that can easily backfire.