I currently have tenants renting my house. They would of been in the property for a year in January 2008. Is it acceptable to increase the rent by 5% in January?. I have a mortgage on the property.
2007-10-17 07:55:37 · 10 answers · asked by Amanda R 1 in Business & Finance ➔ Renting & Real Estate
warn your tenants well in advance of your intention and you won't be able to do it until a new tenancy agreement comes into effect anyway
2007-10-17 07:59:50 · answer #1 · answered by Anonymous · 1⤊ 0⤋
the lesson must be that the tennancy agreement should include a statement about rent reviews.
after a year would seem reasonable.
but where do u get the figure 5%. My impression is that there is a glut of property to rent and rents are fairly stable.
Just because costs in other areas have gone up dont assume that u can pass it to the tennants. They may walk and you will have an empty property and no rent.
look in estate agents windows and in newspapers to see what is being charged.
Just remember if the tennants go not only will you have no rent for a while but you will have to overhaul decoration/furnishings of house because these will look tired after a year.
and keep checks on boilers and electricity uptodate.
Get a bit business minded about this. Some sort of business plan is useful; other house will need painting and you will have no cash.
The property slump is coming you are in renting for the long haul so get a proper agreement organised and do regular market studies on the market. Your tennants will be checking rents elsewhere.
2007-10-17 08:07:10 · answer #2 · answered by Anonymous · 0⤊ 1⤋
If he's not a difficulty, keeps the valuables wonderful and that i don't have an pressing prefer for the better income i could shop him around. Is he a lifelong renter? Or do you have faith that he would be shifting or figuring out to purchase interior the destiny? How plenty did you attempt to enhance it? too plenty...funds marvel? a million month emptiness at the same time as attempting to locate yet another tenant could be better than the better hire he could have paid over the subsequent three hundred and sixty 5 days. and there is mostly a gamble they wont be as stable a tenant. do you could desire to be interior the industry hire variety? ARe you making plans on advertising and prefer rents to mirror bigger? i could by no potential hand a hire enhance letter. i could mail. additionally you're able to could supply him 60 days be conscious in Ca. If it is not a huge deal for you in looking yet another tenant, then call his bluff. Mail the upward thrust to him if he did no longer take it and verify he's acquainted with by potential of this date hire is this plenty. He might pay because of the fact he doesnt prefer to circulate that huge demonstrate television or spent what he had in savings to purchase it and can't arise with deposits for yet another place. stable luck Open e book Advisors™
2016-10-09 10:18:33 · answer #3 · answered by ? 3 · 0⤊ 0⤋
give 30 days notice. i personally don't like to mess up a christmas though. Figure when the easiest time is to rent a house. February?
What is cost of living increase? How much did taxes go up? What is the cost of moving a months rent when they move out? Are they good tenants or pains in the U know what?
2007-10-17 08:10:40 · answer #4 · answered by MrNeutral 6 · 0⤊ 0⤋
check the rental market in ur area, usually 1.3 to 3% is standard, 5% is a little high, we usually offer a 1 yr at 3% and a 2 yr at 1.5% and we distribute renewals 60 days in advanace so tenants have time to decide and make other arrangements.
take into considerationt he housing market, if they pay on time, are they good tenants, do u wanty to keep them, if u do then give them a small increase, u would rather have good tenants stay than have noone for a whole month and then possibly get new bad tenants who pay late or give u a hard time.
2007-10-17 09:52:01 · answer #5 · answered by spadezgurl22 6 · 0⤊ 0⤋
I would wait until their current lease is up to increase the rent. That way then they can know it is going up and if they can't afford the increase, they can look for another place to live and you can look for other tenants.
The lease usually says what the rent is and, the legalities and when it expires. If the cost of the rent isnt stated in the lease then you can increase it when you want, but if it is I don't think you can increase until the lease is up.
2007-10-17 08:05:19 · answer #6 · answered by MyKidsMom 3 · 1⤊ 1⤋
You need to check the rental market around your area and compare your charges to what is available and to what is currently rented. (supply & demand) If you price your self too high you will then lose your tenant and will have to make the whole mortgage payment. I also agree with the other answerer that you should give the renter warning if after your market research shows that you can increase your rent, this will not only allow the renter to begin to look and determine if they want to stay or go but also allow you to begin to advertise contingent upon what the renter decides to do.
2007-10-17 08:03:40 · answer #7 · answered by newmexicorealestateforms 6 · 0⤊ 2⤋
give them a few months notice of the proposed increase, just so that if they cant afford the increase, then they have time to find someplace else.
did you stipulate that increases are possible in your orginal contract? maybe if you give them a new one in jan if they accept the increase, you should put in there the periods when rent will increase, however, its not advisable to increase the rent each each.
2007-10-17 21:27:26 · answer #8 · answered by Paul S 5 · 0⤊ 0⤋
yes they have been there 1 year and would expect a rent increase around then lets hope they can afford it.
2007-10-17 08:00:32 · answer #9 · answered by Carol B 5 · 0⤊ 0⤋
Wait till after the Tax day of April fifteenth so easy records can be kept.. and i'd raise cost of living, 7% after that.. per year increase and write it in furture contacts..cost of living increase of what ever percentage..
2007-10-17 08:05:35 · answer #10 · answered by ? 7 · 0⤊ 1⤋