Rent Increase

[Margaret Martindale]

I would like feedback.

I have a SFH and the same tenants have been there since 2010.

I have never increased their rent.  They ALWAYS pay on time.

The current rent is $1,200 per month.  The current Zillow recommended

rent for that area is $1,450 per month.

What would you do? 

Thanks!

[Jonathan G.]

we have a similar situation. Current renters in SFH paying $1800 in a market that would support somewhere around $2300 per month. I had decided to propose a $100 increase with a six-month lease and then another $100 at the end of that second six-month lease to bring it up to $2000 per month which was still below market but the renters have been in for many years and were overall really good tenants. Fortunately for us, they informed us before I send out the new terms that they were planning on downsizing which was a bit fortuitous because now we are going to put it on the market at $2300/month this spring. My biggest regret is that we did not increase the rent more over the last eight years and we have been leaving thousands of dollars on the table every year unnecessarily. One of the biggest learning lessons I have gained from being a member of this board. My prior philosophy had been since they are really good renters I would not want to jeopardize losing them by proposing a rent increase but in the end that's not worth losing up to 4-5k every year. My prior philosophy was flawed and it has cost me a lot of money. Moving forward I will keep my low maintenance long-term renters just below market but certainly not that much below .