Rental Increases 2021 - Albuquerque

[Kirsten M.]

As I'm gearing up for lease renewals this spring, I'm looking at current market rents and calculating the increase in property taxes. 2020 rental rates, for a SFHs, are around 7% - 11% less than current rates. Not only are rents increasing, but property taxes are sure to increase this year as well. I used the Property Tax Calculator on bernco.gov and found that based on my current estimates of my properties, my taxes will go up by as much as $1,100 - $1,200/yr. per property. It seems drastic to increase rents by $100/mo to offset the increase in taxes, however, that amount is still less than the 10% max increase allowed by landlords in NM. I have amazing tenants that I want to continue renting with me, but I will also have increased expenses. There are many different schools of thought when it comes to rent increases, which is why I'm coming here to ask you how you plan to handle this with your own tenants. 

[David Torres]

There are several companies in town that will offer the contesting service for 1/3 of the savings.  It is a no brainer, especially when you own more property.

Don't let the tax tail wag the dog when it comes to rent increases.  It is a business decision.  The question I would be asking is are these good tenants?  Do they pay on time?  Do they take care of the property? What is the rate they would pay if they had to move?

Not an easy decision!  Good luck!