Rent Increases

[Robert M.]

Hi Everyone, 

I would like to increase rent but have a tenant that is telling my property manager that they are on fixed income and cannot afford higher rent.  The unit is rented under market value and I am only asking for small increase from $800/mo to $830.  

This tenant has been in the property for only one year and has been a good tenant and takes care of the place fairly well.  I dont want to be in a situation where they always push back and will need to get rent increase overtime.  The property taxes and expenses are on the rise.

What should I do?  I dont feel like my PM is helping me here...should I ask for their assistance?  What specifically should I tell the PM?  I think they simply forward my email stating that the increase was due to higher taxes and maintenance expenses.  

[Steve Vaughan]

I tend to do real small increases yearly, like $10.  I will raise the rent, say $20, then attach a 'loyal renter discount' which gives them $10 off for paying on time, in full. It also thanks them for being a good resident.  I also guarantee no raises until next year, even if they are month to month.  If my raises aren't keeping up with expense increases, I recapture rent increases I don't pass on to my current good tenants when  I re-rent another apt.   The new people are at full market rent, helping reduce the cost of other tenants that have been there longer.  The problem comes when nobody leaves.  Oh wait, that's not such a problem after all!