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Increasing Rent in Passaic, NJ
Good morning BP NJ!
I currently own 3 two-family properties in Passaic, NJ. I've never increased the rent on my tenants, but I'm thinking of implementing this strategy starting this year. Can anyone help me understand how rent increases work in our state? Is there a certain dollar amount? Percentage? Am I allowed to raise their rent without having done any renovations/improvements to the apartment?
Any help would be greatly appreciated!
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Good afternoon BP NJ!
I currently own 3 two-family properties in Passaic, NJ. I've never increased the rent on my tenants, but I'm thinking of implementing this strategy starting this year. Can anyone help me understand how rent increases work in our state? Is there a certain dollar amount? Percentage? Am I allowed to raise their rent without having done any renovations/improvements to the apartment?
Any help would be greatly appreciated!
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Hi Dalwin,
I'm a real estate investor from Passaic NJ as well. Good to meet you. In Passaic specifically, there is a rent leveling board. You should call City Hall and get the specifics. I will answer your last question: yes you can raise the rent without any renos done to the house or the apartments. You have the following reasons that you can explain to the tenants: your costs have gone up, the market has heated up, etc. Good luck and feel free to reach out if you have any other questions.
Arthur Soto
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Hi Arthur,
Thanks for that information!
Since you invest in Passaic as well it would be great to share some tips with each other. How long have you been investing in Passaic? I've been investing in Passaic for almost 2 years now. We just closed on our 3rd 2-family and we're looking to keep growing!
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Hey Dalwin, actually I've been investing in the greater Passaic area for about the same time. Congrats on the newest deal! I'm in the process of closing my 3rd prop (not counting my primary residence) but its in Garfield. I have properties in Wallington and Passaic. And yes, its good to network and share tips and advice via BP.
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@Arthur Soto Congrats on your 3rd property! Hey, I'd love to pick your brain one of these days since you have experience in other markets outside of Passaic.
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@Dalwin Garcia Rent control in Passaic applies to much any investment property except: single family home, single condo/coops, owner-occupied 2-family and new construction. A 2-family investment property would thus be subject to rent control assuming the property has been registered with the town's rent control office.
You can find the town's rent control ordinance here: Passaic, NJ Rent Control Ordinance