All Forum Posts by: Morgan Porter

@Cameron Riley My rentals typically have worse tenants... college kids. I hedge the risk my requiring parents co-sign and of course collecting full deposits. I know this is a different scenario but I’d recommend requiring a double deposit and try to get a co-signer if possible.

Nope

Quickbooks is definitely the way to go. If you really want to save a few bucks, you can also use Mint.com but it doesn't have all the features of Quickbooks. You'd need to create custom Tags to make it work, which isn't hard, but its a bit more time consuming.

@Thomas S. Honestly, the 2 year lease is just an offer and so far no tenants have taken that route. They end up moving out or renewing for another 12 months with the 3% increase. 

I should also add that my rentals are in fairly desirable areas with higher rents than most areas. So tenants typically pay a bit more to avoid moving unless they have a major life change that dictates the move.

All my leases include a clause that says the rent will go up 3% each year. I try to highlight this clause when a new tenant signs a lease so they know in advance. The first, most obvious reason is the increase in taxes and insurance. Any improvements can also be mentioned but are not the total driver behind your increased costs. Most of my rentals on 12 month terms but if someone wants to sign a longer term (2 or more years), they can lock in the rent and it won't go up.

On the other hand, if I get a good tenant and they complain about the 3% increase when its time to renew, I may waive the increase to avoid looking for a new tenant.

As the property owner you have the right to set the rent to whatever you want. Tenants, of course, have the right to move out. So ultimately, it's about getting the price right for that property and the local market.