How much to raise the rent on renewal?

[Jimmy S.]

Currently charging $1000 a month and lease renews on 6/14. Current tenants are easy going but are late alot and take ok care of the property, they could do much better but I can live with it if it does not get worse. Anyways under priced it first year to rent it out fast for $1000 and I really think I can get around $1,100 now. Mine is the lowest price in the area for the size of the house.

How much would you raise the rent on the renewal?

[Bill S.]

Just be aware $100 or 10% rent increase is probably too much for them to swallow. Also be aware, since they only take ok care of the place it will be a challenge to get market rent while they occupy it, so you are probably looking at a month vacancy maybe more. That month vacancy eats up your $100 rent increase pretty fast. The max I would think you could expect would be $50 but you can ASK. Something like, "You are getting below market rent what do you think would be fair for this next year?" You might be surprised what they say.

Late rent. Change your late policy. Late one day and you have a fee. That fee increases every day they are late ($10 per day here) Gives incentive to pay up sooner. NO GRACE PERIOD. Post notices for late rent according to your state law and as soon as your law allows, file for eviction. My experience is that tenants that get more than 10 days late rarely get caught up. It just turns into a death spiral that sucks in the landlord and costs them money.

Get them on an ACH service, ClearNow or erentpayment type thing that takes the money from their account. Offer them a payday payment option or Biweekly rents. Take the money right after they get paid and your late payments will go away. Let them know, in writing, from here forward late payments, cost late fees.