All Forum Posts by: Cheryl Daniels

@Cheryl Daniels What are the comparable rents for an apartment of that size?  I would start there.

As long as you are ok with the fact that raising the rent may also result in a temporary vacancy while you turn the unit over then I say go for it. 

If as a landlord you have come in and are  starting to maintain better then the previous owner the rent increase may be received a bit better. That is at least what I heard from my tenants when I took over the last place. They had expectations I would fix things that the previous landlord did not fix.  You don't always get more when you pay more, utilities increase due to cost without giving you any better service.  While you may feel bad about an increase without doing something there are times when it is necessary due to your costs.  Your turnover unit will tell you what's market and then adjust for condition of the not updated unit.

Painting inconveniences the tenant but some improvements you can do without disturbing the tenant too much include updating a fridge, toilet or vanity. I had one tenant who had a really old and loud fridge she was happy to see replaced. Old high volume toilets changed out helps you too although not every tenant will appreciate it.

@Cheryl Daniels If your rents are below market rent, then by all means increase the rent. Depending on the number of units your apartment have, you could start small (implement the $100 increase in 2-4 units) and raise the rent in the other units gradually but let the tenants know ahead of time.  

Hi @Cheryl Daniels, thanks for the heads up on the increases.  Can you tell which utilities have of the two you mentioned has increased this year (I did receive a notice from PGW of a proposed hike) and which one will increase.  I paid my trash removal fee for 2016 and it was the same as 2015.  I have not heard of a hike in the water rates, but I don't always read the fillers that are placed in the water bill.

@Steve Babiak, you are always up to date on what in going on in Philly, have you heard of any pending increases?

from Mechanicsburg, Pennsylvania

 @Cheryl Daniels

The biggest rent increases for us come when there is a tenant turnover and we would typically clean, paint, repair and upgrade at that time. This past year we raised some rents by $260/mo.

We've had long term tenants, as long as 30 years and their rents are typically not raised every year, but that creates a position where they get further and further behind versus market rents.

Costs go up every year for taxes, insurance, maintenance, utilities, etc. When we raise rents I try to explain that in terms of costs going up and upgrades that we made. But typically we try not to raise rents drastically on existing tenants. At one place this year the condo fee went up $35. I only raised the rent $10, but explained to the tenant that the condo fee had risen by much more.

One time I bought a rental with an existing tenant, that the owner had never raised the rent in many years. When the tenant's lease expired I raised the rent $200, from $550 to $750 for a 3 bedroom place. The tenant threw a fit. Angrily called me and even had somebody else call me also. I explained that even at $750, the rent was still well below market rent, and that to reassure them selves they didn't have to take my word for it, go look at other places and if you find a better, cheaper place feel free to move. After a couple weeks the tenant came back to me a signed anew lease. I was vindicated, their rent was STILL below market and they found that to be true. btw, they stayed for 3 more years then bought a home of their own.