It\u2019s that time of year again when your tenant\u2019s tenure is almost up, and you\u2019re weighing your options. They\u2019ve been fantastic, and you want them to stay. At the same time, lease rates everywhere else are hiked up. Should you increase their rent as well? If yes, by what factor? There is favorable mid-point between ensuring that your tenants are well tended to for the long-term retention of the good ones while realizing a profit in your business.<\/p>\n
How does rental revenue look on your mortgage?\u00a0<\/strong> If you\u2019re servicing a mortgage on your property, there must be a percentage of the rent that goes towards it. Hence, you need to know whether it\u2019s time to raise the rent by calculating your rent-mortgage ratio. This involves analyzing the specifics of your mortgage as well as revising your ROI projections.<\/p>\n Do you need to raise the rent?\u00a0 <\/strong>You need to find a resolution between what will generate profit for your business and persuading your upright occupants to remain. One way around this is gleaning what rates the landlords in your vicinity are charging. If what you intend to charge exceeds the value of similar properties, then the tenant may opt to move on. This may put you at the risk of the turn around a lengthy period of in occupancy.<\/p>\n What are the rights of your tenant? <\/strong>When it comes to rent increments, tenants have certain privileges. It is best to become acquainted with the local laws so that you handle any circumstances properly. Does your property feature senior citizen rent increase exemption? Some local laws cover rent increments on the elderly. Due to this discrepancy, it\u2019s best to know the legalities of increasing the rent of senior citizen tenants in your area.<\/p>\n What are the legal stipulations about Section 8 increases? <\/strong>If you\u2019ve decided to provide housing solutions for Section 8 occupants, then expect some limitations. There are merits and demerits of choosing section 8 tenants, and once again, you must consider the legal implications of raising the tenement rate on this cohort.<\/p>\n Timing is essential:<\/strong> There are various reasons why you may raise the rent on your property. One such idea is keeping in tune with rising prices. Find the most appropriate time to break it to your tenants about the change in clear terms.<\/p>\n Writing a rent increase memo:<\/strong> You\u2019ll need to notify your tenant of your decision to raise the rent in a written letter. This must be done before you offer them an option to renew their rent so that they have ample time to weigh their options.<\/p>\n Negotiating rent increase:<\/strong> Your decision to increase the rent may be met with rebuttals from your tenant. They may wish to open negotiations. And that\u2019s why you must anticipate the angles they may be coming from and whether you\u2019ll conform to them or not.<\/p>\n Cushioning the effects of the increase:<\/strong> If your tenant is great and you don\u2019t want them to leave over hiked rent, offer them some benefits if they opt to renew their contract. By doing this, you\u2019re showing them that you care, incentivizing them to stay and that your decision to increase the rent was influenced by surges in the local market.<\/p>\n Add-on options:<\/strong> In addition to enticing your tenant to stay on, you may liaise with local businesses to know if they keen on collaborating with you. You can offer yearlong rebates, rather than a one-off gift.<\/p>","protected":false},"excerpt":{"rendered":" The man, who is in a stable condition in hospital, has potentially life-changing injuries after the overnight attack in Garvagh, County Londonderry. He was shot in the arms and legs.<\/p>","protected":false},"author":1,"featured_media":2204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[37,38,47,35,36],"class_list":["post-211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-state","tag-landlords","tag-property","tag-raise","tag-rent","tag-tenants"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/sernalegal.com\/wp-content\/uploads\/2019\/11\/money-2724241_1280.jpg?fit=1280%2C864&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/posts\/211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/comments?post=211"}],"version-history":[{"count":0,"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/posts\/211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/media\/2204"}],"wp:attachment":[{"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/media?parent=211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/categories?post=211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sernalegal.com\/es\/wp-json\/wp\/v2\/tags?post=211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are the legal concerns about raising rent?<\/h3>\n
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\nIs your property rent-stabilized? <\/strong>This characteristic depends on the location of your property. The article above explains the conditions for raising rent.<\/p>\nNow you\u2019ve decided to raise the rent, what\u2019 next?<\/h3>\n