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I have a small attached-to-my-house legal apartment that I rent out to a 50 yr old disabled man. He's been there for about 3 years and is a good tenant for the most part and is a month to month tenant. He pays separately for his utilities. He says he loves living here as the place is nice and quiet and the outside is pretty to look at through his windows, and it's close to the bus stop, to his doctors and to the post office and the grocery store, a couple of fast food mom&pop places, and little shops & coffee places down the main street (walkable distance).
With the economy going downhill, well, I am going to be in the red.
It's the economy, but I did check local newspapers and he is paying the cheapest rent in the entire So California area (we're not in or near slum areas), from what I could find!
I know his SSI disability from the state has been reduced and I have a conscience issue instead of a head for business I guess.
I'd like to raise his rent by $30 and I've never raised his rent before.
I have a small attached-to-my-house legal apartment that I rent out to a 50 yr old disabled man. He's been there for about 3 years and is a good tenant for the most part and is a month to month tenant. He pays separately for his utilities. He says he loves living here as the place is nice and quiet and the outside is pretty to look at through his windows, and it's close to the bus stop, to his doctors and to the post office and the grocery store, a couple of fast food mom&pop places, and little shops & coffee places down the main street (walkable distance).
With the economy going downhill, well, I am going to be in the red.
It's the economy, but I did check local newspapers and he is paying the cheapest rent in the entire So California area (we're not in or near slum areas), from what I could find!
I know his SSI disability from the state has been reduced and I have a conscience issue instead of a head for business I guess.
I'd like to raise his rent by $30 and I've never raised his rent before.
What do you think?
If you get along with this guy and he isn't a problem renter, why raise his rent? He may just move out, leaving you with to find another tennant. It would take 10 months to recoup the $30 increase, not to mention the costs if you couldn't rent t right away, the cleaning, etc to get it ready for the new guy, etc. Does $30 really mean so much to you?
I'm not a landlord, so you can dismiss my thoughts if you'd like!
Personally I don't see why you'd bother with just $30? If you were talking about raising the rent to the going rate for you area? That I could see. You will most likely lose him as a tenant, but if you're really going in the red each month? Then it might be time to do that.
But to raise it $30? That's not enough to be of any significant help to your bottom line - and MaryleeII is right, as small of an amount as it is, it might be just enough to make him have to move. And that would end up costing you money... Unless of course you then raised the rent to the going rate for the next tenant! So that might actually work out in your favor?
If I were you I would do the research on your local area - and find out what the going rate is for what you offer. I live in Southern California too, and it's a huge area, and rents vary widely, so you really do have to only look at your own city or town, or locality. Once you know exactly what your unit is worth, it will probably be easier to make a decision.
One final thought, a bad tenant in a small apartment attached to your house could make your life hell - so even if this guy isn't paying as much as you'd like, he still may be worth keeping!
$30 would probably be a major chunk for him, though. Maybe you could have a chat with him and explain that the bad economy and increased costs are hurting you and explaining that although you're reluctant to raise his rent, could he afford a little more? I would think this is the best route to go and maybe you can reach a compromise. Good luck!
How about see if the Apt qulifies for HUD-Section 8 AND IF he Qulifies You could then Raise his rent to a Fair Amount & He would only be paying 30% of his income [likly Lowering his cost of what hes paying Now] But at the same time Raising the rent Win-Win For both of you! HUD will pay you on the 1st of everymonth Direct Deposit the 70%!! BTW Please talk to him 1st! IF his disability is SSI the State will adjust his check to a certain amount for the $30! IF hes on SSD No Adjustment he might be forced to move! Either way TALK to him so you can Both decide how to go! Remember you already have a Great built in tennant!
How about see if the Apt qulifies for HUD-Section 8 AND IF he Qulifies You could then Raise his rent to a Fair Amount & He would only be paying 30% of his income [likly Lowering his cost of what hes paying Now] But at the same time Raising the rent Win-Win For both of you! HUD will pay you on the 1st of everymonth Direct Deposit the 70%!! BTW Please talk to him 1st! IF his disability is SSI the State will adjust his check to a certain amount for the $30! IF hes on SSD No Adjustment he might be forced to move! Either way TALK to him so you can Both decide how to go! Remember you already have a Great built in tennant!
It can take years for him to get approved. Most states have several years' worth of folks on the waiting list for Sec 8.
I have a small attached-to-my-house legal apartment that I rent out to a 50 yr old disabled man. He's been there for about 3 years and is a good tenant for the most part and is a month to month tenant. He pays separately for his utilities. He says he loves living here as the place is nice and quiet and the outside is pretty to look at through his windows, and it's close to the bus stop, to his doctors and to the post office and the grocery store, a couple of fast food mom&pop places, and little shops & coffee places down the main street (walkable distance).
With the economy going downhill, well, I am going to be in the red.
It's the economy, but I did check local newspapers and he is paying the cheapest rent in the entire So California area (we're not in or near slum areas), from what I could find!
I know his SSI disability from the state has been reduced and I have a conscience issue instead of a head for business I guess.
I'd like to raise his rent by $30 and I've never raised his rent before.
What do you think?
Raising rent is a business decision not a moral choice. If you are not meeting your obligation then rent must be increased. Just follow through with all the terms of your lease. Maybe you would be interested in a longer lease so he might feel more security rather than a month to month?
There are still some areas where the wait list is short! They can only try! I waited 18 months my gf got on in 7 months another friend instantly! Depends on the area!
Yeah, $30 seems like chump change for the risk to lose a great tenant.
You could make that much panhandling for a couple of hours in a busy intersection just one day per month.
If you do raise it, blame it on property taxes. Make sure your tenants knows you are not nickle-&-dimeing him. Make sure they understand the extra money goes to the city and not in your pocket.
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