Raising Rent: Good idea or bad business practice

[Brian Oberg]

We currently own three investment properties (SFR) and looking to expand that by at least 4 this year. We have always held it to be a good business practice to not raise rent on current tenants when the renew their lease for subsequent years. Our thoughts were it is better to keep the rent where it was and keep the tenant for another year (or more) rather than take the chance for them to move over the higher rent and then have to go without a tenant for a period of time that would exceed the amount we would have made with the higher rent. Are we doing this wrong?