‘Tis the season
As we’re approaching the one year mark, it’s time for new leases.
And with new leases comes rent increases.
My thought was to keep the rents the same. Having a tenant move out
of my first duplex would put a serious crimp in my plans. But not
having a rental increase puts a longer-term crimp.
The tenants in the front house, paying the higher rent, have stated
their opposition to rental increases. But since a third roommate has
been found in the house it makes an argument against rental increase
mute. More roommates mean higher rent.
One aspect of rentals I will have to adjust to: turn over.
Even if the house sits vacant for a month, maybe two, the new rent I could ask would be higher than the rental increase. And that would be even better for the overall picture.
Mute or moot?
What does the market say? Is a rent increase justified by the comps?
Tenants compare rents, but (oddly) don’t always consider the cost of moving. I like to keep my increases in the 3 to 4 percent range, as that can usually be absorbed without a problem. I don’t want a vacancy over $25 a month, so I keep a close eye on the competition to make sure there is little or no financial incentive to move.
However, I will raise the rent a little more aggressively if I think the tenant is not maintaining the place properly. It gives me a bigger cushion for repairs.
Did the new roommate sign a lease as well? We have anyone over the age of 18 to sign. That may give you more ammo to raise the rent.
AI, it was never my intention to seek a rent increase of more than 3%. Fortunately I don’t have rent-control or any other issue to worry about.
Carla, I don’t see the other houses that much. When I was there 6 months ago, I noticed some stuff in the second bedroom. The tenant told me someone was staying there temporarily. A few weeks back, taking care of another plumbing problem, the person was still “staying there”. I didn’t push the issue because I knew that lease renewal was approaching. But you’re right, more ammo!
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