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Some may remember I was battling with the idea of raising the rent of my long-term tenants. They are paying approx $150/month under market value. Well, I sent them a letter indicating I was raising the rent $25/month. Well, you would have thought I told them I was raising the rent $500/month.
They were so mad I was raising it after "just last year, I raised the rent $25/month on them." In the total 6 years they have lived at the property, the only increase was that $25. That comment made me realize were they expecting to not ever have a rent increase again?! I have done a lot of work on the exterior of the home and lawn care is also included. I have also told them that if they want anything upgraded in the home, I will do so, but I will raise the rent. They have declined that offer but yet they complained today "the carpet is too thin." (Carpet was brand new when they moved in).
I told them everything on my end is rising in cost and there are no comparables anywhere that will get you the same thing for what you are paying now. I finally said I'll raise it an extra $10/month, yet she was still mad. The tenant said "well we will be looking around and will get back to you." I'm like really?! You will move over an extra $10/month?!
Folks, literally. There are shacks going for what they are paying in the really bad parts of town. It just irks me so much when tenants think they deserve the world and they try and take advantage of you.
Hopefully no tenants troll on this post either because unless you have ever been a landlord, you have no room to talk.
One trick that my brother (a landlord) used to do if people complained about the rent increase was to have a list of nearby rental properties that were similar to his property and more expensive. Or properties that were clearly worse, smaller, in bad neighborhoods, etc. and were the same or more expensive than his property.
After seeing that list people rarely complained. He also tried to raise the rent less often but for a larger amount. As you noticed, your renters seemed just as grumpy at $10 as at $25 a month. Maybe you should have raised it $50 or $100 a month if they are paying $150 under market.
I live in Chicago in a 2 bedroom apartment.Over the past 4 years our rent an gone up only 150 dollars. I say only because other people in apartments like ours pay over 1300, in the same building. I have a feeling our landlord want us to move but 3 bedrooms around here runs about 1800 dollars a month so we are waiting until I'm done with school.
But crying over such a small amount as 25 bucks is stupid.
It may have been new 6 years ago but carpet is zeroed out for depreciation at either 5 years or 9 years depending on the depreciation schedule you use.
So, it's either already at 0 or most of the way there.
You are complaining just as much as they are specifically on a public forum. So what if they move out over $10 or $25 increase? What do you care? You'd think you would be ecstatic that they would move so you can charge whatever amount your little heart desires and then you will have nothing to complain about.
Oh wait, or could it possibly be that you are a tad bit worried about losing fairly decent consistent tenants that pay their rent on time and that you might get horrible tenants to replace them that will want the old worn out carpet replaced?
You gotta pick your battles.
And FYI - I am on both ends of the spectrum. Both a PM and a tenant.
Your "market rent" may not be the real market rent. In my area if you went by Craigslist you would think market rent is $800-$1000 for a 1 BR apartment. The reality is that it is more like $550-$700.
What happens often is that the rent section is flooded with listings from property management companies who often charge higher than normal rents. The private landlords are almost always lower. The problem is these PMC will often list the same unit ten or 12 times a day making it appear rents are much higher.
Another thing I hardly ever see mentioned:
Landlords always want to raise the rent with many excuses however consider that the house and the furnishings are also one year older. This is even more true for an older home where a year or two can make a big difference where things start going bad.
The reality is no one is happy about a rent increase... heck, most are not happy about paying rent.
You did you homework and made your decision... going from $25 to $10 just encourages more of the same.
It doesn't matter how fair or how great of a deal they have if THEY don't think so... sometimes the only way realizing is once it is lost.
I really don't feel the effort to raise $10 is worth it for great tenants... just me.
The other approach is to train your tenants to expect a rent increase every year and follow through... some have been know to let it slip the rent is going up 6% and then when it comes time to give notice the increase might be 5% with a note...
It may have been new 6 years ago but carpet is zeroed out for depreciation at either 5 years or 9 years depending on the depreciation schedule you use.
So, it's either already at 0 or most of the way there.
it might be at "zero" for depreciation purposes, but if it's worn, the wear is because of the tenant's actions. Homeowners paying for carpet themselves often get 15+ years out of carpet - if you take off your shoes, vacuum regularly & clean up spills promptly, carpet lasts much longer.
Depreciation is a tax term, not necessarily the end of somethings useful life. You'll find very few landlords who will ever replace a carpet while a tenant is in a unit, no matter how many years the tenant has been there. And there's no legal requirement for a landlord to do so.
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