Is the time ripe for you to raise your tenants’ rent? If so, what if you like your tenant and you don’t want to see them go? I’ll answer both of those questions today.
For any rental property owner or manager, there’s a time to raise rent, but when is it? I’ll answer that question today.
In my view, your decision to raise your tenants’ rent should be centered around the market. When the market goes up, so should rent. That’s why it’s so important for you to stay attuned to what the market is doing.
Over the last 10 years or so, home values in San Antonio have crept up by about 5% to 7% year in and year out, and rent is increasing about 3% to 7% each year. In other words, now is the time to begin thinking about raising the rent you charge. As you set higher rates, pay careful attention to the neighborhood the home is in.
When the market goes up, so should rent.
A question I receive often and that you may also be wondering is, “What if I have a good tenant?” If you are happy with a current tenant, you want to make every effort to keep that tenant around. Since you’ll be raising rent, it’s doubly important for you to stay on top of repairs and do the small things that make for a more pleasant, amicable working relationship.
If you have any additional questions about today’s topic, please don’t hesitate to reach out to me. I’d love to have a conversation with you about it!