Raising rent every year

[Bill E.]

I have a general question about raising rent. If you have a property that is at " market rent" do you still raise or attempt to raise the rent when renewing a tenants lease?

[Bettina F.]

If you are truly at market, your tenant would have a number of options for comparable properties at the current rent.  If this is true, the only thing that would prevent your tenant from moving to the other properties would be the cost and effort of moving.   Also, because there are other comparable properties available, it would be harder for the LL to fill vacancies.

If all of these conditions were true, I would not raise rents at lease renewal.  However, most markets tolerate at least a small rent increase (2-3 percent) due to higher property taxes, increased insurance costs, etc.   

Do a micro market analysis of available properties in your area.  Usually there is something you can use to differentiate your property from another.  Are the schools better near your property?   Are you near a desirable park or other attraction?  Are you close to transit?  Could you offer an amenity or upgrade  to make your property more desirable? (Free Wifi?  Tiled kitchen backsplash?  New window coverings?