Raising Rent

[Charles Stubblebine]

Hello,

I rent out the first house I bought. I have had the same renters since May of 2014, almost two years. I have charged them $1400 a month and never raised the rent. I would love to get some feedback from this community on if I should eventually raise the rent at some point. They have always paid and they are good renters. I do not want to "offend them" by raising the rent however I do realize inflationary forces are at work on my money and obviously I want to maximize my monthly profits. Please provide any experiences or feedback if you can. Thank you. 

Sincerely,

Charlie

[Jerry W.]

@Charles Stubblebine

I check the following on a regular basis; Craigslist rent section, local and neighboring town newspaper, for rent rent signs I see posted, and talking with local realtors who manage rental properties. Please note prices vary by size, location, and condition. Since you are in a much bigger metropolitan area than me I would imagine that location plays a much larger role than in my area. Also do not forget to network, other landlords are a great source of information.

For me I intentionally keep rents a little bit below the going market rate.  Most folks will disagree with that philosophy, but it works well for me.  I have a full time day job and it keeps me fairly busy.  I also have over 30 units of which I manage about half of those myself.  Having good renters is more valuable to me than an extra $50 or even $100 per month.  It also gives me the pick of the renter pool.  My method is not for everyone, but where I am the one painting the house and replacing carpet when folks move out it is worth it to me.  Good luck and congratulations on how well you have done so far.