Rent Increase Question

[Teawanda Wells]

What is the typical annual increase in rent? I have a single family house that has no mortgage. I've been renting to the same family (elderly couple and their adult daughter) for the last 3 years with no increase. Why no increase...rent has been paid on time every month with exception of two times within the 3 years and I guess I'm nice :). Lease is to be renewed in the next 2 months and I am definitely increasing rent this year due to increasing property taxes and insurance. Just curious as to the typical annual increases.

[Andrew Kerr]

@Teawanda Wells - Welcome to BP. Congrats on owning a property mortgage free.

While you want to try and always do an annual rent increase to make sure you stay with the market rents, keeping a good tenant is important.

I typically try to keep rent increases in the 3-5% range. If you start to get higher than that, folks might have trouble adjusting (a lot of folks are paycheck to paycheck), or they might feel its not justified and start looking around for some place new.