All Forum Posts by: Tim Gillette

Since I started my investor training last year in April, I've talked to many people that have had rentals for years, and I always ask them, "when was the last time you raised the rent?", answer, "we haven't", I ask, "why not?" answer, "they're great renters, they really take care of the place!" I ask, "when was the last time you raised it?" the answers vary, but, between 5-8 years, and most of them here in Denver! I tell them, "renters know that prices go up, and expect rents to go up also, you are loosing money!" They look like they're afraid to notify the renters of an increase.

My question is; Are people afraid they'll loose their renters if they raise rent, is this a hobby or a business!

My comment; Please don't get caught up in this thinking, especially if you are an investor intent on making some profits.

Nicolas,

I got the pocket listing from my realtor, the owner wanted out, was tired of being landlord, and became sick. He asked, $125,000. I offered, $109,900 and he accepted.

Chris, I looked at datascout.com and other similar sites, also talked to other investors and bankers, all saying the same thing. My Brother in law is in the construction industry and told me, everyone he talks to that there isn't enough rental properties to rent. Sure enough, after renovating out duplex and just listed it on craigslist, I had so many lookers coming by, texting and emailing me, I almost lost track of who I did and didn't reply to. Oh, and every time I put a For Rent sign in the yard, I had 5-8 people come see the place.

Oh, the demand for rentals is high in this working class area. They can afford rent but usually not able to purchase a home.

We were looking for sfr's, but stumbled upon a duplex, a pocket listing from my realtor. I inherited a current tenant, and remodeled the other (vacated) side. The current rent for 2/1 rental is $600 (per side) and all those type properties are not taken care of. There are a minimal supply of rentals in our area, therefore, the demand is high. We remodeled the empty side and placed the unit up for $750/month and got plenty of applications, and placing a tenant this next weekend. In the afterthought, we should of/could have started higher. So I'd rather supply the demand, set my own price, rather than competing with lower rent rates.

BTW, it also ups my value of my duplex with higher rental income...Ka-ching!