2022 Rental Market Questions for Fellow Landlords

[Sean Todd]

Hello fellow landlords! I am curious how much you are planning on raising your rents this coming year. As I am doing my comps I am noticing a huge difference from my current leases and what they would lease for. Most comps are running 20% to 30% more than current rent. Are any of you seeing the same numbers? What, if any discounts are you giving good tenants? I am having a hard time asking $500 more rent to my good tenants but those are what the numbers are showing ($1600 to $2100 for example). Any additional thoughts?

[Greg M.]

Originally posted by @Sean Todd:

I am having a hard time asking $500 more rent to my good tenants but those are what the numbers are showing ($1600 to $2100 for example). Any additional thoughts? 

If the market went from $1600 to $1100, would your good tenants have a hard time asking you for a $500 reduction?

If your current tenants won't be able to pay the new market rent, I'd rip the band-aid off and bring it to market. Let them leave and get a tenant that can pay market. That might sound harsh, but if they're never going to be able to pay market rent, you're just prolonging your losses with them. If they will be able to pay market rent, using a step approach to rent increases is fine. Try going to $1850 and when they look around and see it's $2100 elsewhere, they will realize they have got a good deal.