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Thanks again for all the advice. I really appreciate it as I try to gain more knowledge on being a landlord.
After really looking at what rents are in the area, I REALLY want to increase the rent to $650 this year, but I am terrified to do so. I know I stated what 1BR apartments are going for, but is that the best way to judge how much your rental should go for? If that's the case, I am seeing 1BRs go for $750 down the street. There is ONE apartment complex that rent starts at $550 nearby, but its known to not be safe.
What is starting to get me annoyed, though, is my tenants seem to be getting pushy, as far as how they want the outside/inside of their property to look like. For instance, I just did a big project on the outside, and they are saying I need to do "this and that" and that eventually the inside of the unit will need updating. Nothing needs updated. Until an appliance goes out, I am not replacing the one you have. I also know how to upkeep the exterior, as I have a lawn guy that tends to everything. I am just getting frazzled by their comments lately that the home is all of a sudden not to their satisfaction. Has this happened to any landlords where the tenants want all these projects done? When I rented condos throughout college and also while married, there were a ton of things that I had to live with (old carpet, old bathrooms, etc) and I didn't complain because I signed up to live there.
No, my tenants never demand that I make cosmetic improvements. I do have one property and the tenants dislike the wallpaper. They have offered to re-wallpaper if I pay for the materials. I do agree that the tenants have a point and I am going to do this upgrade. Haven't decided if I want them doing the work because I fear they may do an amateaur job.
Basically, its your house and if you don't want to make changes, do not. Its very simple to say "Yep, that is an idea....someday it would be nice but not now." I probably would not indicate that updating happens when applicances wear out or you'll have some broken stuff soon.
For goodness sake, just raise the rent. If you want to run a business grow a pair.
For goodness sake, just raise the rent. If you want to run a business grow a pair.
Thanks for the suggestion, but I think I'm doing pretty good at being a landlord at twenty-something and spending thousands to maintain a property each year. If I'm concerned about the rental price and need counseling on how to proceed, then I'll ask for opinions and not expect a sly comment like that.
Let your tenants know that their demands/suggestions will result in a rent increase if you make the "improvements." Maybe a significant increase. Have a number in mind--maybe the $750/$800. This may make the decision for you. Be nice about it and thank them for wanting your property to look its best, but you cannot do it without asking for a higher rent.
Thanks for the suggestion, but I think I'm doing pretty good at being a landlord at twenty-something and spending thousands to maintain a property each year. If I'm concerned about the rental price and need counseling on how to proceed, then I'll ask for opinions and not expect a sly comment like that.
I wasn't trying to be sly or snarky. Sometimes you just have to "just do it." You know your rent is low and you are taking great care of the property. Raise the rent 3-5%. Its something you just have to do to get over the fear of taking charge. They are your customers but you have to run a profitable business. Your job is to provide them a good value but it has to make sense for you. You are not in this business to simply make them happy and cheat yourself.
CCUGal, you are doing pretty well being a landlord at 20-something. But you are a little wishy-washy. Even the tenants think so by continually asking you for this and that. WorldKlas gave you solid advice by telling you to grow a pair, it was not insulting. If you had a pair, you would not have taken it as such.
Tenants want to be treated fairly and want a predictable landlord. Don't let them run over you but be fair. Their housing is very important to them, don't be a bully. But on the other hand, you have a business to run and you are in charge.
I know the rent needs raised, I just do not want to lose my tenants. But really, everything is going up in my area. I guess I wouldn't expect my rent to be the same after 5 years. I always had rent increases and was a great tenant.
I do appreciate everyone's input. Do you think I'm cheating myself going up to $650? I just don't want to make it so high I will be forcing my tenants to leave.
Thanks for the suggestion, but I think I'm doing pretty good at being a landlord at twenty-something and spending thousands to maintain a property each year. If I'm concerned about the rental price and need counseling on how to proceed, then I'll ask for opinions and not expect a sly comment like that.
Its the internet, on a public forum. Why would you expect otherwise? The advice is worth what you pay for it.
Quote:
Originally Posted by CCUGal
I know the rent needs raised, I just do not want to lose my tenants. But really, everything is going up in my area. I guess I wouldn't expect my rent to be the same after 5 years. I always had rent increases and was a great tenant.
I do appreciate everyone's input. Do you think I'm cheating myself going up to $650? I just don't want to make it so high I will be forcing my tenants to leave.
What is the rental market like where you are? Is it hard to find tenants, or not? I hate to say it, but "paying tenant," while a good thing, doesn't deserve a cookie. It is generally expected that people pay their rent or mortgage.
One thing to consider, maybe do improvements and THEN take the rent up...
My landlord has raised my rent on my condo $50 every year. I am a widow on a fixed income who has not had a COLA in 2 years. Eventually if they keep raising it I won't be able to afford living here. I know that the unit was paid for in cash for under $80K five years ago and other than the $220 HOA fee and low taxes they are making quite a profit every month. I have lived here almost 3 years, pay on the 1st of every month and keep the unit like it was my own home. I have no kids and one small dog who rarely barks and is housebroken.
There is no rule that you must raise your rent every year but most landlords do it anyway even when the economy is bad. You have to weigh your options. Do you want to be a good guy/gal who has nice, quiet tenants who don't cause you any problems and always pay on time or do you want to be the typical landlord who is only interested in $$$$? Granted you don't want to lose money every month but put yourself in their shoes also.
Here's what I'd do. I'd do it in a letter. I'd say that, as you know, your rent has stayed something as a bargain, since something comparable would easily be $800. So, with my efforts to keep the rent reasonable, with your lease renewal, it will be going up to $650.
This way you will remind them of their good luck, and also it will allow you some leeway. If they come back to you, shocked, saying they can't possibly afford that, you can back down to $640.
However, as adults, they must know perfectly well that rents go up. It shouldn't come as a surprise to them.
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Its the internet, on a public forum. Why would you expect otherwise? The advice is worth what you pay for it.
