Need to increase rents

[Jordan Bradberry]

1. Good evening all- I just purchased my first investment duplex however I’m in a bit of a bind. I need to lease my current condo within one month! Please give me ideas on how to secure a lease fast any advice helps! 2. My second question is I need to raise the rent on a duplex I purchased; the previous owner was renting the units for an extremely low price. I just closed on the 20th, what should I do??

[Dan K.]

Hi Jordan.

1. As Skylar said, post your unit on every possible outlet. For craigslist, continually update the posting so that it's always just a few hours old. Also, pictures, pictures, pictures! A floor plan is also helpful. You can of course also engage with rental agents. In my market it's standard for the agent to charge the tenant a fee but I know that's rare.

2. Raising rents. If there are leases in place you can't do anything until they expire. If they are TAWs, you have two options. The first is just be direct. Tell them that you have done your research and that their current rents are not in line with market rates and that you are raising there rent to $xxx. The second option is to gradually do it. I'd be upfront and say something like: "I've done market research and as I assume you know your rent is not in line with the market. I appreciate your tenancy and therefore would like to increase it gradually. Starting on __ date your rent will go up by $xxx. In six months it will go to $xxx, and in 1 year it will go to $xxx. After the increase in 12-months I will not increase the rent for at least 1 year." Also, rather than giving just the dollar increase, I sometimes do a percentage if the percentage seems small (i.e. raising the rent of a $4,000 unit by $200 is only 5%).