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We have a rental in very convenient location to many local companies. A same tenant now for over 18 years and charge only 2/3 or less rental price but ok with it. Will sell once they move out.
My landlord dropped my rent after the first year, it's an owner occupied duplex, so having a renter they liked was a big consideration. Now they have offered to sell me the duplex. If it all works out, I am hoping to pay it forward to someone else someday.
I'm basically doing the same. Have a SFH rental in Phoenix area that rents for $1,200. Looking just now the cheapest house in the housing development is $1,970 and most are at about $2,200.
We did raise them $100 this renewal. Maybe in 2 years I might bump them up another $100. We're cash flow positive by about $300 a month when all is said and done.
I always figure I'll bump it up when (if) they ever leave.
I do consistently increase rents at lease renewal. Usually 3-5%. But locally, rents appear to be increasing 10-20%. That’s higher than inflation.
I have rentals and I am often below market. Since I still work full time, I want good tenants that take care of my properties. I can't have someone moving in every year and dealing with that kind of turnover. High rents often mean shorter-term tenants as they try and secure cheaper housing. I adjust up to market between tenants and then when I have them, I make small adjustments as we go along.
Most people are generous in some way, some donate to charity, some volunteer. There is nothing wrong with being generous with your tenants. Being so generous that the property can't be maintained isn't what I am talking about, of course.
I haven't raised the rent on my Honolulu condo since I started renting it out in September of 2019 precisely because I didn't want to risk losing a good tenant who diligently paid throughout this pandemic. Me seeking to get an extra $50 a month wasn't worth the risk of ultimately ending up with a new tenant who would not pay rent or treat the unit with respect. As I get ready to move back into the unit later this year, I have zero regrets.
1500 on a paid for house=750 to 900 positive cash flow after everything. Get an estimate on new HVAC and new roof, then come back and talk to us.
Ha Ha. All have new roofs and HVAC’s under 6 years of age…. Still there are always maintenance costs. Last year all got new exterior paint jobs and one got a new driveway, one a new fence; and both insurance and taxes are high in Texas (approx $7K together for each property). I’m not making much money on these places at all.
Ha Ha. All have new roofs and HVAC’s under 6 years of age…. Still there are always maintenance costs. Last year all got new exterior paint jobs and one got a new driveway, one a new fence; and both insurance and taxes are high in Texas (approx $7K together for each property). I’m not making much money on these places at all.
I would allow 50% for everything except P&I in a state like Texas to calculate cash flow...would be at at least 40% in other markets.
We're just the opposite. If we can raise the rent 100% while still maintaining a healthy waiting list, we'll raise the rent 100%. Our monthly rent factors in a turnover so the tenant is really paying us for a a potential turnover at lease expiration. We already know that the bulk of our tenants can buy a mansion on the hill but have chosen to rent (or maintain a side rental) so a couple more thou$and a month isn't hurting them at all. However, as a condition of reducing occupancy units during the luxury conversion, we had to set aside a couple of units as affordable housing. Those rents are dictated so we can't raise them on our own.
For us, the name of the game is money. We're in this to make as much money as possible. We're not friends, buds or mates with the tenants. We're not a charitable operation nor do we care about tenants' financial or social issues. We set the rates, they pay the rates or they live elsewhere. It's not personal, just business!
We're just the opposite. If we can raise the rent 100% while still maintaining a healthy waiting list, we'll raise the rent 100%. Our monthly rent factors in a turnover so the tenant is really paying us for a a potential turnover at lease expiration. We already know that the bulk of our tenants can buy a mansion on the hill but have chosen to rent (or maintain a side rental) so a couple more thou$and a month isn't hurting them at all. However, as a condition of reducing occupancy units during the luxury conversion, we had to set aside a couple of units as affordable housing. Those rents are dictated so we can't raise them on our own.
For us, the name of the game is money. We're in this to make as much money as possible. We're not friends, buds or mates with the tenants. We're not a charitable operation nor do we care about tenants' financial or social issues. We set the rates, they pay the rates or they live elsewhere. It's not personal, just business!
Interesting honesty you have there.
Bleed them poor.
Wait til you get bled upon.
Then you'll understand that the greatest asset besides the real estate is the responsible tenent.
I was a landlord and had some business ethics of not screwing people over. This included raising prices. My mortgage payment was consistent . It wasn't raised . Why fleece a good tenent. Simply because you can?
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