How often should landlords raise rents?

Question

My rental is about $300 under priced for rent.Similiar home rent for $1800.I've had the same tenants for 2 years. Am considering increasing rent. No rent control in L.a. What would be appropriate?

I currently charge $1500.

Answer 1

You should raise the rent whenever market conditions allow for it, its a business! That being said you need to make sure that you are making an apples to apples comparison of rental properties. Ask yourself a couple of questions as well:

1. How much will I have to spend on the property to command top dollar? Will I need new carpet, new paint, new...?

2. How much is the good relationship you have with quality tenants worth? Would you trade a couple thousand a year for the potential that your new tenants may not be as good?

You may want to simply talk to your tenants and let them know what the situation is. You should be able to negotiate something fair without threatening the good relationship.

Good luck!

Answer 2

If you have had the same tenants for 2 years and they are paying $1500 a month you might want to consider leaving it that way. Good Tenants are very hard to come by these days. Have you thought of what other costs the tenants incure living in the home. regarding electric, gas, water, garbage. All this combined might mean your 2 year tenant wouldn't be able to afford a $300 increase in rent.

Answer 3

in california there is a law that says you can increase by whatevr percentage you want----but here is the catch.

if the rent increase is below 10%, then you need only give the tenant a 30 day notice of the rent increase.
if the rent increase is 10% or more then you need to give 60 days notice of the increase.

this increase can be once, twice or more per year and is a per year rule: so total rent increase for the entire year is 9% ---then you give a 30 day notice each time (maybe 3%, and then a 6%---with a 30 day notice each time)

hope this helps

Answer 4

Similar homes rent for $1800, and you are renting yours out for $300?! How the heck did that happen?

If you are very sure that $1800 is a reasonable amount to expect, I'd talk to the tenants and tell them that the rent is drastically under market and you're going to have to raise it substantially, maybe to $1500 or something like that. Be decent and give them a few months to find someplace else if they aren't willing to pay that much.

Answer 5

It depends how much you like your tenants. If you like your tenant, charge them for inflation adjustments because treating them nicer will keep them here longer especially if they take care of your property. If not, raise their rent higher than market so you can get the property back to rent to the next person(s). If you don't care either way, just raise it up somewhere near or below market. If you raise the rents at market price, you're tenant may consider moving out because they probably want more bang for their buck.

Answer 6

Find out what kind of rent your prospective tennants can reasonably afford, then take into account the location and condition of your rental unit.
If there is anything wrong, deduct for this, but don't go too cheap, or your people will probably be of lower standards than you would prefer in your home.
Remember, if they pay well for nice, they will more likely take better care of it, you don't want a bunch of Hillbillies and their hound dogs in there!

Answer 7

You raise the rent to market conditions based on your property. There is no rule of thumb. In your example, you raise the rent to $1800.

Lost highway was correct to point out the notices you need to give.

Regards

Answer 8

once a year is standard - you should make sure your leases have a rent increase provision in them - typically 3-4% per year

Answer 9

why would you increase it just because you can. the reason the pple live there is b/c they cant afford their own. You increase it every year if youre a mean landlord. Its not by a whole lot either and they have the right to reject it. you're a slum lord. for shame

Answer 10

For us it was 10% each year.