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They town city could also have limits on yearly increases - I've seen it as low as 2% and as high as 2.5% where our properties are.
But that might be for existing leases and not for a new listing...
Where we are it is free markets ruling...if a tenant doesn't like it they can leave or not rent it and the owner is forced to lower the rent to get it rented.
I just got another call for a property with a pool and the first question was about negotiating the rent...I told her we can make it higher since we already got at least 10 people very interested into renting it...of course I was joking about raising the rent price but anyone asking for discounts is usually not a good candidate when it comes to our experience.
Asking is of course free and can be smart but in a market where rentals move fast it usually is showing that the tenant hardly can afford it and especially with pool homes that is often the case.
I check what the market rate is for a similar property each year and adjust the rental amount accordingly. Occasionally, with a good tenant, I will not increase the rent if the market has not changed much, or I will decrease it less than the market increase.
Thanks. You all seem to have a common point, which is different from what someone told me (which I was skeptical to begin with, thus coming here to check). That person told me that when a tenant moves out, the LL lowers the rent back for the incoming new tenant, and that that practice motivates some people to switch apartment frequently, moving back and forth (i.e. sometimes moving back to where they used to live), in order to get lower rent. I was skeptical because that would imply the LL was practically encouraging the tenant to move.
Perhaps the person you were talking to did not explain it right. He probably meant that people move around frequently in order to take advantage of move in specials (free first month of rent, etc.). Since tenants do not typically get another special after their first year, they have to move again to get another move in special. So they end up moving every year to keep getting specials.
But that might be for existing leases and not for a new listing...
Where we are it is free markets ruling...if a tenant doesn't like it they can leave or not rent it and the owner is forced to lower the rent to get it rented.
I just got another call for a property with a pool and the first question was about negotiating the rent...I told her we can make it higher since we already got at least 10 people very interested into renting it...of course I was joking about raising the rent price but anyone asking for discounts is usually not a good candidate when it comes to our experience.
Asking is of course free and can be smart but in a market where rentals move fast it usually is showing that the tenant hardly can afford it and especially with pool homes that is often the case.
Unfortunately, with the city rent control board, what I stated is how it is.
You can buy a property that has under-market value rent but you can't increase the rent above the given percentage per annum unless you improve the units (not the general condition/common spaces) by $5K. And the city has to "approve" the improvements. Or a new LL could fill out a form with the city for a "market value adjustment" to bring the rent up to market value.
The market value adjustment is not by owner, it's by property, and if the previous owner has already been awarded a market value adjustment (without improvements) you have to wait 5 years FROM that allowance until you, as the new owner, can file a claim to raise rents to market value.
No... unless you are in rent controlled jurisdiction and then their rules apply.
I tend to go easy on rent increases for "My" good tenants... I've learned turnovers cost money and have one family going back to 1989.
When units become vacant rent goes to market.
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