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Updated almost 2 years ago on . Most recent reply

User Stats

6
Posts
3
Votes
Shawn Mix
  • Shelton, CT
3
Votes |
6
Posts

Rent Raise Advise/Inputs Wanted

Shawn Mix
  • Shelton, CT
Posted

So I've owned a 3 family property now for a little over 3 years. I inherited the property with 2 tenants. Went through some changes but have settled with 3 great tenants at this point and have been stable for over 6 months. Biggest problem was a pain on the first floor that actually caused me to lose my second floor tenant who was good, and almost lost the second tenant I placed too because of them. But that is cleared up now. 

Following the sage advice always posted, always look at raising the rates to match with the market and inflation. In 3 years, I've not raised the rate on the 2nd and 3rd floors. In my opinion, they were paying top dollar or potentially more than I would have imagined getting. Combine that with a re-fi I took during the great rates we had, I'm actually cash flowing 143%. While I can probably raise the rents just 1% to keep up and not totally ruin my tenants worlds, I am trying to really gauge if it's worth rocking the boat at all

Gradual over time I know is better rather than raising the rates a larger amount in 5-10 yrs, but honestly even selling the property to a new owner, at current rates, with the rents - they'd still probably cash flow. So I'm really just wrestling with thoughts on when you do/don't decide this might be an exception and its best not to jeopardize the peace I've had for the past 6 months of literally ZERO calls from tenants and a cash flowing property. 

Thoughts, opinions, and suggestions welcome. 

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