Inflation increase/rent increase

[Rhea Jackson]

I'm new at RE investing and I own a few investment properties that are being rented out. We have a property management company that deals with everything, so my question is... When inflation goes up, rent goes up (not sure all the time?) so with dealing with property management, as a landlord, are we allowed to up the rent? How does that work with the property management? I have not contacted my property management about this yet. Just wanting to get advise. Thanks in advance.

[John Thedford]

I think it is prudent to raise rents as you get turnover and market rents increase. Your PM company should be able to give you guidance as to market rents. If you fail to timely raise rents, you will find you are under market and it is more difficult to raise them fast enough to compensate for market changes. I made this mistake two years ago when dealing with health issues. I had to raise one tenant $190 a month. That wasn't an easy adjustment for either of us:) Fortunately, they are on a month to month so I didn't have to wait until a lease expired. I now raise rents with every turnover and our market justifies the increase. More than likely, yours might as well. Increased taxes, insurance, operating expenses, as well as market fluctuations etc are valid reasons to increase them.