I have some really nice tenants. they have been in my home for two years now. My expenses have gone up and i could really use the money that would come from a 5% increase. They are very successfull and I asm sure they can afford it.
My realtor tells me that I can get $4,000. (four thousand)
a month more with a new tenant. this is beach property in malibu. But I really like my current tenants.
should i go for the 5%?
2007-07-29 06:14:32 · 5 answers · asked by charlotte q 2 in Business & Finance ➔ Renting & Real Estate
I consider myself a really good landlord. I take excellent care of the propertyand cater to every need of my tenant.
2007-07-29 06:15:23 · update #1
5% after two years is reasonable...I'm sure they are expecting an increase sometime,and have gotten increases in pay over two years...
2007-07-29 06:18:15 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Hi, I think I talked to you before. Weren't you looking to sell that property??
Anyway, to answer your question, you should treat your rental as a business and should adjust your rent to what the rental market is for your area. Your rental amount should never be based on how much you pay in mortgage or other expenses. So if you can make $4000 more a month, then you should do it.
Keep in mind that in California, any increase in rent over 10% will need to be made with a 60 day advance notice. Also, check to see if there are any rent control issues that might come to play.
Regards
2007-07-29 07:42:32 · answer #2 · answered by Anonymous · 2⤊ 0⤋
everybody here has answered from the prospective of an owner or 'making money'
let me tell you what i have learned from my tenants point of views...
if you give them an increase and also include a letter indicating "my costs have increased sharply over the last 2 years....etc..." and give them enough time...they are more than willing to accept this....
in california the going annual rate of increase is 7.5%
good luck
2007-07-29 10:48:58 · answer #3 · answered by Blue October 6 · 1⤊ 0⤋
Yes, you probably should. Even though you care about the tenants, you need to cover your increased costs.
2007-07-29 06:17:40 · answer #4 · answered by hottotrot1_usa 7 · 2⤊ 0⤋
I would NOT fall behind in the future.
With inflation running AT least 5% per year (most likely double that) I would raise it 5% this year, and next, then the next year, and again the next year.
You must stay ahead of the inflation curve.
Terry S.
2007-07-29 06:39:14 · answer #5 · answered by Terry S 5 · 2⤊ 0⤋