Typical rent increase per year

[Account Closed]

How much do you typically increase rent per year? Is it different in a hot market vs. a slow market? Please share what market you invest in.

[Bart H.]

Originally posted by @Account Closed:

How much do you typically increase rent per year? Is it different in a hot market vs. a slow market? Please share what market you invest in.

I don't know that we are some super market tested property manager, but our policy has been to increase the rent every year by 2-4%/year.  We rent initially at market rate and offer renewals to great tenants at a growth rate slightly less than market.

Our properties are in active markets in the Dallas area where rents have been going up 5-7% a year, we aren't in small town rural Washington :)

I suppose in a down market we would increase the rent a token amount, but we would always raise it.

If we got into a market where it was difficult to find replacement tenants, I think we would focus on offering an enhancement to the property as we did an increase.  Maybe new tile in a bathroom, or a new appliance.  IE some sort of repair we planned on doing but tie the 'rent increase' to the property repair.