Help to increase the rent or not.

[Alex Moazeni]

Hi

On one of my properties, I just requested rent to increase from$2300 to $2450.

Now,the teanent wants to move out due to her budget.

It is 3 bed with 1850 sqf.

It is brand new home.

Also she is a great teanent and I never had any problems with her during this 2 years.

What do you guys think?

Let her move out and find the new tenant, or not increase the rent and let her stay.

The renewal is July 1st.

The rent comps says $2200 wich I am at $2300 as of now?

Maby I am too greedy for asking $2450?

Appreciate your thoughts.

[Greg Scott]

Your resident is probably doing the math and realizing she can save $250/mo to move, so it is worth the hassle of moving.

What caused you to raise the rents $150/mo when your rent was already above market?  If rent comps are $2200, you are unlikely to have a new resident move in at $2450.  Not only will you have vacancy and make-ready fees, you might also end up with a rent lower than $2300.

I would have held rents flat, or at most, raised them $25.