Are you raising rents?

[Esther S]

As I approach the 1-year point of our lease, I'm toying with the idea of raising rents. Of course, I am concerned that our renters would move out rather than pay the additional rent.

So, I'm curious about what others are doing. Are you:
- raising rents?
- how much more ($ or %)
- type of property (SFR, etc.)
- where are you?

Thanks much!

[Brian Levredge]

I think the decision to do so should be based on what kind of tenants you have and what the overall market conditions are like where the property is. If you have great tenants that pay on time and are otherwise never heard from, I would probably leave the rent the same. Other factors to consider:

What is demand like in general in your market?
Is your unit below, at, or above market?

Even a small rent raise can tweak a good tenant enough to move. That means your next tenants are going to have to stay even longer at the slightly higher rent to make up for the lost income from the vacancy and turnover costs. If your tenants suck, then by all means give them a rent raise and make it a good one. I've got several really good ones, and I've left their rent alone since my expenses haven't changed.