Whether you are new to investing in rental property or have done it for decades, many homeowners report that among their most stressful moments of the rental property journey is when they need to tell their tenants that rent has increased. However, not all rent adjustments have to be a bad thing.
To successfully raise rent without raising concern, it is important that you use these tips from Real Property Management TradeWinds to better communicate with your tenants and also show them the value they receive based on the changing costs.
Home Improvements
Every time a potential renter is choosing their rental home, they look at details like the age of the house, how new appliances are, whether the color scheme of the house is contemporary and matches their design, etc. In this first selection stage, a tenant must decide what matches their price range and are often willing to go slightly above their budget if one house meets their needs over another.
However, once in a home, there are often restrictions to what a tenant can perform with regards to painting, remodeling, etc. It is necessary for your renter to understand that as you make improvements to your house, the price increases with its marketability. Many tenants feel entitled to the initial price of rent they have been given, but if you explain the benefits that come with the increase in rent, your renters are much more likely to not raise their concern over rising costs.
Housing Market
It’s easy to feel that your renters think you’re just being greedy when you raise their rent. However, if you can explain to them where the money is going, they will understand better why you must increase their rent.
One situation to illustrate this concept is that of a fast growing city. With time, leasing listings found close to the core of the town, or some other principal attraction, will naturally increase in cost. Though this might seem unfair, it’s offset by leasing prices falling in surrounding regions, and the decision is then left up to the tenant as to where they would like to be. It’s not a landlord’s error. It’s a lively and exciting town, and these organic cost increases have to be clarified.
Homeownership
Many renters do not fully understand the benefits that leasing a home can offer. While they may feel like they pay a great deal of money, they don’t see the mortgage bill, taxes, homeowner insurance bill, utility invoices, and house loans that must be paid for them to reside in the property they call home. When broken down, all of these elements add up, and when taxes or interest on loans increase, prices naturally grow.
Though your tenant should not know the particulars of all of these things, it’s helpful to describe how you’ve taken on the job of homeownership so that they can take pleasure in the house they live in. All rent increases must be done within the laws, but it is still important to take advantage of this potential extra money.
In Conclusion
When rent increases are correctly explained, you’ll discover that it’s possible to have both satisfied tenants and additional income. If you’d like more information about the professional services that Real Property Management TradeWinds provides, then contact us online or call us at 727-400-4722 for more information.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
