Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
Lease is coming due for renewal end of June.Tenants what to extend lease for 1 yr.Tenants were excellent the past yr.Always paid rent on time.Took care of property.Never had an issue .What is the typical rent % increase happening in the market with Covid circumstances (3%,5%). I donot want to overcharge the tenants but still have to factor in inflation.
Real Estate Agent · Orlando, FL · Member since 2019 · 59 posts · 90 votes
5y
@Jeyo Punnakottil
Look for comparables and make sure your tenants are paying less than similar. This year I raised the rent on my tenants and explained that over the past year HOA and taxes went up. At the same time, since they were excellent, I wanted to make sure they were still paying less than comparable properties. They quickly signed.
Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
5y
@Jeyo Punnakottil 3-5% is always reasonable. Some say not to raise rents if the tenant is good and paying on time. Thats a rookie mistake. Always increase a reasonable amount. Your insurance is not keeping your rates the same because you pay on time. They go up every year as well.
No late fee and no rent increase for tenants during covid. For late fee, they do have to show some proof. I increased rent for new tenants. But we increase rent every year- 2020-2021 was an exception.
Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
5y
@Tracy Streich Thank you for the reply .I agree to your logic.Never had a claim on my both ppties and insurence is going up by 500$ and 650$ on my ppties . Ppty taxes also went up like crazy in middle of pandemic .
@Mrinal Parashar How do you handle Ppty tax hikes and Insurence hikes if you are not increasing rent.Just curious.
We increase the rent every year(except 2020-2021). We estimate the tax and insurance hikes and increase the rents during the vacancy. For example, one of our long term tenant left last month- we put the property on market with 20% increase in rent.(we put it on market when the tenant was still there and she did the showings for us-- took three weeks to rent but we got the price we wanted which is a little above market-- if it was vacant then we would have to bring it down)
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y
Our rents skyrocketed in 2020 and 2021. 10% is the new norm. It probably depends on the rent amount, but nobody moves over $50/mo. If they move, they were moving anyway.
Real Estate Agent · Orlando, FL · Member since 2019 · 59 posts · 90 votes
5y
@Jeyo Punnakottil
Look for comparables and make sure your tenants are paying less than similar. This year I raised the rent on my tenants and explained that over the past year HOA and taxes went up. At the same time, since they were excellent, I wanted to make sure they were still paying less than comparable properties. They quickly signed.
Our rents skyrocketed in 2020 and 2021. 10% is the new norm. It probably depends on the rent amount, but nobody moves over $50/mo. If they move, they were moving anyway.
Thanks bill for the update .Is 10% hike in rent normal in your area? I am from Texas and 10% hike seems too much , i think 5% is reasonable in todays market.
Look for comparables and make sure your tenants are paying less than similar. This year I raised the rent on my tenants and explained that over the past year HOA and taxes went up. At the same time, since they were excellent, I wanted to make sure they were still paying less than comparable properties. They quickly signed.
Thanks for the input .My Hoa and Taxes shot through the roof in the middle of a pandemic too.
10% seems common for my SFR. We're talking $1400-$1600 rents, so about $150 increase.
I Just had a long term tenant leave on the 10th. I thought I was charging at market rate. $1395. PM found a replacement in less than a week at $1850/mo. A 30% increase. They move in on the first.