All Forum Posts by: Mike Hourihan

@Pradeep Prabakar Ravindran I hope you don't mind cold weather. it's in the 30s right now here in Maryland

Quote from @Susan Mangan:

If you're thinking of raising the rents 93% of the market rate, you could run some reports to show the tenant that they would be paying well below what the market is saying. That might help to show that if they decided not to renew the lease with your terms, they would be paying a lot more elsewhere. Just food for thought. 

thanks for the input.  Yeah I thought of showing them some similar rentals on the market which have much higher rents.  However, as  I mentioned in my response to @Eddie Brady above, I will probably keeps rents as is for the foreseeable future.  I may wait until a tenant moves out and then advertise at a higher amount 

Quote from @Eddie Brady:

@Tim Miller I just read this thread and wanted to offer some perspective. Obviously, it's just my opinion so take it for what it's worth. If it was my unit, I would consider the turnover cost of denying the renewal to the current tenant, refreshing the unit, and marketing it again. Lost rent, cleaning fees, paint, carpet etc can add up quickly and could leave you in a worse position than your 90% market rent. If you're cash-flowing well, it may be worth waiting another year to re-assess. Finding great tenants can be challenging so there is a value-add to that!  

thanks for the input.  definitely valid points.  I have been thinking this too.  the current tenants are basically zero maintenance and they pay on time and If I were to bring in new tenants, there is a chance that this could change.  With the increase in prices for gas and other necessities, I'm sure my tenants are feeling the pain, so I will probably not raise rents at this time.

@Pearla White what do you do that brings in 200k? just curious

@Tim Miller thanks for the input. I called the county Monday and after she confirmed my understanding, I asked if I could notify the tenants now of an increase to begin effective June 1st and she said yes. The current rent is about 90% of what seems to be the market rate for similar rentals in the area and my proposed amount for a new lease is 93% for a 2yr lease.

I had texted the tenant on Friday about this and they replied saying they havent gotten a pay increase and everything else is going up. I told her to think about it. They are great tenants very low maintenance so I don't want to lose them but I'm definitely leaving some meat on the bone if I keep rent the same.

I have units in Montgomery County, Maryland and have never raised rents but would like to do so now as my rents are far below market.  One tenant's lease ends 3/31 and the other is month-to-month.  I see the Voluntary Rent Guideline for 2022 letter dated feb 4, 2022.  From what I understand after reading it, it looks like prior to a law being passed last year, there was no restriction on rent increases and that since the law was passed, they were capped at 1.4% and then on feb 4, the amount changed to only .4%, the rate which will apply until May 15, 2022.  At that point, would it then change to a new rate or is the cap supposed to end?

What constitutes an increase?  If their lease is ending and you are proposing amounts for a new lease, is that an increase?  Or is it only when raising within their lease, assuming the lease allows for increases during the lease term? 

If you cant propose a new lease to the current tenant with an increase above the VRG, can you find a new tenant and ask for a higher amount?  Or is it considered raising rents even though its a new tenant?

The law is a little vague for someone who has never raised rents.  Any help would be appreciated.  I will probably call 311 on Monday but it might be easier to get answers from experienced moco landlords

@Caroline Gerardo

I've worked with the attorney before.. used them a few times. He told me no charge until the offer is accepted and I hire him to do the contract. As far as the letter being non-binding, that is what he told me and that is exactly what I want for now. Don't want to pay anything until we at least have an informal agreement to proceed. Thanks for the input

I had emailed a title company earlier today for a quote on title fees and I asked this question.  The attorney called me and explained that a letter of intent will suffice and is non-binding as nothing is signed by the seller.  He advised me to list the terms and copy him on the email and let the seller know that if she wants to proceed, he can send us a contract to sign.  I'm drafting up the email now.

Thank you for the input @Caroline Gerardo and @Garrett Cole Tompkins

I found a good off market deal and the seller is accepting offers.  I have pre-approval letter and a title company lined up.  I'm not working with a realtor yet, but if my offer is accepted, I will be hiring someone to do the full contract electronically.  For now, I need an initial sales contract.  Does anyone know of one I can use for MD?  I see that you can create one on RocketLawyer.com.  Has anyone used that?  Any advice is appreciated.  Looking to make an offer today or tomorrow!

@Chris Hill just curious.. where did you come up with $30k/month?