Is a rent increase of $100 per year fair on upper class 1 & 2 bedroom units, or should it be more or less?

Question

This property is located in one of the outer boros of New york City (Staten Island), the property is a 14 year old building with large luxury apartments in excellent currently renting at ($1500) atleast $200 above the going rate for 2 bedroom apartments, they include Garage and driveway, washer and dryer...Tenants pay own utilities...is $100 dollars a year increase fair?

Answer 1

That's about a 0.5% increase, way below the inflation rate actually.

Given the increased costs for utilities (for common areas, for example) and other costs related to fuel prices (deliveries, trash hauling, etc.) I'd say it's better than fair -- it's a BARGAIN! If it were my property, I'd be looking at raising rents by about $100.00 per MONTH, not per year!

Answer 2

$100 a YEAR seems dirt cheap but...you are already stating they are above the market. Raise it more and they just may end up empty. So unless you are planning on improvements, I'd pass on the rent increase.

Greedy landlords tend to get the worst tenants.

Answer 3

This is a matter of supply and demand--not justice or fairness. The question is not is it fair, but will people pay that much? And the answer is usually, yes or more.

Answer 4

Econ 101: charge the market clearing price.

Answer 5

It can only increase by 2%

Answer 6

yes very fair! They are going by the newest market rate. I work in the field.

Answer 7

$100 a year is less than $10 a month so I think you mean $100 a month!

http://www.total-knowledge.com/~willyblues/

Answer 8

Depends on your need.