should you raise a small mom and pop tenant after 1 year if you are getting a fair rent and is responsible?

In Property Management - Asked by mike f. - Jan 27, 2015
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Answer(s)

Dean G.
Broker/Agent
Jacksonville, FL

Happy tenants stay, and they have a tendency to say good things about management and Landlords when they have had a good experience. We are still in recovery in our markets in Florida. Tenants need to stay in the black while the economy is still in the recovery zone. I would recommend either waiting to future years, or raise the rent by three percent per year as a Cost of Living Adjustment. Remember that Profit Maximization in Real Estate involves keeping your property occupied. Rents that are too high do not maximize profits when tenants seeks alternatives, and substitutes in the market. Keep your tenants within their goals and they will stay with you in the long term, and that is what you want.

Jan 27, 2015
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Nizan M.
Owner/Investor
Boca Raton, FL

i wouldn't. if you do and they decide to move out, you will waste more money on getting it rent ready for the next tenant. also if they are responsible, that means headache free. that my friend is worth more than the increase. good residents are hard to come by. if you have good responsible residents that pay on time and don't complain, make them feel great and they will stay, and you will be able to sleep at night and enjoy your weekends and evenings.

Jan 27, 2015
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Edmond S.
Broker/Agent
Modesto, CA

I tend to agree that it is better to keep a good tenant happy so they stay. It is not worth to raise the rent after one year, however, longer period of time it might start adding up. The longer you wait raising the rent the harder it is to catch up with market rate. It is an act of balance, keeping a good tenant or risking having zero income

Jan 27, 2015
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Kim M.
Broker/Agent
Mesa, AZ

I think the key here is that you are getting "fair rent". Tenants that are not getting fair rent leave.

Jan 31, 2015
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