Raising Rent Woes

[Katherine Earle]

I’m buying properties that were owned by tired landlords who never raised rents. For the most part, tenants aren't complaining about it because I do it slowly and give them lots of warning. Of course, I still get tenants who are barely making ends meet as it is and they can’t afford the increased rent, whether it’s 30 days from now or a year from now. What’s your strategy for raising rents? Do you tell them your plan or do you raise it over time, only giving them the minimum required time and they either deal with it or move? They expected the rent increases, but they were hounding me for what it would be. So, I gave it to them a curtesy. Since they are complaining anyway, I’m questioning how I should do it in the future.

[Jesse Walters]

Every time I raise rents I always give them some market data and then list a few bullet points of maintenace items/improvements I plan to do to the building in the coming year so it doesn’t looks like I’m pocketing all of the profits. 

I’ve always found success in that approach with little to no complaints.