I'm a small time landlord. At what point do you raise the rent on your tenants and possibly force them out?

[oregonwoodsmoke]

Originally Posted by truckinusa

......... She is paying $1200, and the going rent is $1600-$1700. ........a tenant for 7 years now.

I like to keep rents slightly under market, but $400 a month under market is a bit too much of a discount. You are basically taking $400 out of your own pocket and off your family's dinner table to pay part of your tenant's living expenses for her.

That's why many experienced landlords always raise rent a little bit every year. If you had been raising her rent $50 a year, she'd be paying close to market rate, but still under market so that she wouldn't want to move.

I doubt that you can raise rent by $400, but it is time to start raising it every year. If you really want to keep her, make it a $50 raise and do it every year so the rent doesn't get further and further behind market rate. It would be better to raise it $100 a month so that you would catch up to market rate sooner.

No wait. Make that $60 raise. That's a 5% raise and no one could consider a 5% raise to be unreasonable.

[freemkt]

Originally Posted by Electrician4you

When you rent you are simply paying for a service. When you go to a mechanic you're not paying his electric bill. You're paying to get your car fixed. No different with the rent. You're paying for the use of a house as shelter.

What a LL does with the money is his business. You have no financial investment in the property so you shouldn't benefit from any gains/discounts/rebates etc that the LL gets. As if we get property tax reduction. Might as well ask for profit sharing. I'm surprised you didn't throw that in.

Yeah it's hard to find tenants to pay rent on time I'm sure some will rush right out and pay the property tax. On time.

Here is a idea, go buy your own rentals then you can be the benefactor to all the tenants who want all the things you want. You might last a year. Maybe

Renting is where you pay a premium to enjoy temporary, impaired use of property.

Protectionist, NIMBY government does not allow the sale of rental property at a scale I can afford to purchase. I'm confident that if I owned rental property, I could provide better service for less money AND improve my neighborhood as well. But barriers to entry are high so the greediest and best-financed win in this business.

[truckinusa]

Originally Posted by WorldKlas

Just fyi; in the past 5 years my taxes on my rental properties in Dallas (where the OP is a LL) have doubled! My insurance has also almost doubled.

My tenants, in the post I made above, leased their rental house from me at $900/mo. 5 years ago and right now their rent is $1175 in a neighborhood where rents are $1400-1600.
Small starter homes.

Taxes are about $3500 annually; Insurance is about $1200; maintenance varies alot. Then, there's mortgage for most landlords, too.

My expenses are about the same. Home is actually in Denton County. Property tax last year was $3200. This year tax is proposed to be at $3600. Home tax value is $179,000 and insurance is $1200 a year also.

I am slightly worried about the inevitable Air Conditioner repair. If it completely died I would have to probably do the work myself. They get quite expensive. I still spent $4000 replacing the system on my home now just for parts at a deep discount. They typically last around 12 years I am told. This system is from 2007 or 10 years old. Maybe two more seasons if I'm lucky. I am leaning towards giving notice in September the rent will be $50 higher January 1st. Seems like the best approach. She had talked about getting a roommate to afford expenses this summer. That would definitely be a new lease and a rent increase.

[Electrician4you]

Originally Posted by truckinusa

My expenses are about the same. Home is actually in Denton County. Property tax last year was $3200. This year tax is proposed to be at $3600. Home tax value is $179,000 and insurance is $1200 a year also.

I am slightly worried about the inevitable Air Conditioner repair. If it completely died I would have to probably do the work myself. They get quite expensive. I still spent $4000 replacing the system on my home now just for parts at a deep discount. They typically last around 12 years I am told. This system is from 2007 or 10 years old. Maybe two more seasons if I'm lucky. I am leaning towards giving notice in September the rent will be $50 higher January 1st. Seems like the best approach. She had talked about getting a roommate to afford expenses this summer. That would definitely be a new lease and a rent increase.

If she gets a roommate bring the rent up to close to going rate.

Originally Posted by freemkt

Renting is where you pay a premium to enjoy temporary, impaired use of property.

Protectionist, NIMBY government does not allow the sale of rental property at a scale I can afford to purchase. I'm confident that if I owned rental property, I could provide better service for less money AND improve my neighborhood as well. But barriers to entry are high so the greediest and best-financed win in this business.

Renting is where you have the full USE of a property without having to do anything but live in it and pay the agreed upon price.

No you couldn't provide the service and quality or improve the neighborhood you think you can for the lowest price. No matter what you think it takes money to run a business. It also takes money to make a property desirable to tenants. And ultimately I know you don't like to hear this, I'm in business to make money. I'm happy that I can offer great safe properties and the ability to take care and maintain then. But ultimately I am in it to make a profit. That's why going to the 99 cent store isn't the same as going into a Ralph's. Because in order to offer quality and attract customers you're not going to do it on a 99 cent budget

The barriers are only high because you have no money to buy anything with. You give the SAME excuses and tired repetitive answers. Let's assume you have some money to buy something. Why don't you spell out this great business plan. Let's hear it. Let's see what the hottest idea since the sun is. How are you going to do all these things and still make a profit.
You think all these people who bought rentals didnt take risks or have a hard time getting Then? You think they all just crapped out bundles of cash?

Your posts are full of Whaaaaa I can't. That's why you can't. Because you don't have the mental drive and fortitude to do something more than go to your minimum wage job and complain on CD about how badly you are treated and life isn't fair.