Whether you’re brand new to investing in rental property or have done it for quite a long time, many homeowners report that one of the most stressful moments of their rental property adventure is when they must tell their tenants that lease pricing has changed. However, not all rent adjustments need to be a terrible thing, even if the price does go up.
So as to successfully raise your rent prices, without raising concern, it is important you take these tips from Real Property Management Eclipse to better communicate with your tenants and show them the value they get based on the changing prices.
When a potential renter is choosing their rental home, they’re looking at some of the finer details such as the age of the home, how fresh appliances are, even if the color scheme of the house is modern and matches their design, etc. In this initial collection stage, a tenant must decide what matches their budget and are often inclined to go slightly above their scope if a single home meets their needs over another.
Once a tenant has signed a lease for a rental property there are often constraints to what a tenant can perform in terms of remodeling, painting, etc. It is important for the tenant to consider that as you make improvements to your rental property, the price will increase with its marketability. Many tenants feel entitled to the rental and to the original price they were given.
If the house improvements satisfy their expectations, then your tenants are far more likely to not raise their concern over cost increases should they believe they’re receiving benefits.
It is easy to feel as if your tenants presume you’re greedy because you are raising your prices, but if you have some time to describe them where the money is going, this scenario doesn’t need to happen. Just as the housing market varies from a buyer’s market to a seller’s market so do the costs.
A scenario to illustrate this is that of a fast growing city. With time, leasing listings which can be found close to the core of the city, or some other principal attraction are going to naturally increase in price due to the demand. While this may seem unfair, it is offset by leasing prices dropping in surrounding regions and the decision is then left up to the renter where they would like to be. It’s not a landlord’s fault it is a busy and exciting town, and these natural cost increases must be clarified.
Many renters don’t fully understand the advantages that renting can deliver. While they might feel as they pay a great deal of money that they don’t typically observe the mortgage invoice, the taxes, homeowner insurance, the utility invoices and the house loans it required them to reside in the home they call home. When broken down every one of these components add up, and when earnings interest or change begins to build loans that are possible, then prices obviously grow.
Though your tenant shouldn’t understand the particulars of each one these things, it’s a beneficial talking point to describe how you’ve taken on the job of homeownership, so they may take pleasure in the house that they live in. All rent increases must be performed within the legislation, with some niches just allowing for minimum rent increases yearly, it’s still important to benefit from the possible additional money.
When properly communicated, with plenty of notice before any changes have been made, you’ll discover it is likely to have the best of both worlds together with both happy tenants and additional income.
If you want more information about the services that Real Property Management Eclipse offers, then contact us online or call us at 425-209-0252 today.