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How to Tactfully Increase Your Rent Prices

Last week, we talked about ways to ensure higher rent prices for your property. We’re back again this week with more advice on increasing rent when a tenant renews their lease. Determining rent prices as a landlord can be tricky. Not only do you have to pay attention to market rates, there’s also a strategy to increasing rent rates for current tenants without the increase being so drastic those tenants get angry and move out.

To make sure everything goes as smoothly as possible when raising your rates, there are some tips to keep in mind.


Raising Your Rates at Renewal
Say you have a tenant who has been great all year. You let them know beforehand that rent prices may increase, and they were a great tenant.

When renewal time comes around, how do you let them know about the increase? And by how much do you increase? If you’ve already let them know ahead of time there might be an increase, that’s a good way to set up the stage. And most tenants who were already thinking about renewing won’t leave for a $50 increase.

Think about what price will be fair to your tenants who want to stay. You can also give tenants an explanation of the increase by sending them a letter 90 days before renewal. Explain the circumstances, such as insurance prices, property tax increases, cost of maintenance, etc. These are the points to include in the letter:

  • What the rate increase is
  • When the increase is effective
  • How many days notice are needed if they intend to move out

Always Check Market Prices

Tenants should expect that you will increase the rent on leases when they’re renewed. Call JMarshall Square Oklahoma City today to see what their rates are. To determine the most accurate price increase, always compare yours with what’s available at other properties like yours at the time you plan to increase. Consider the amenities offered by other places versus yours. If they offer even less and are still charging higher prices than you, that’s a good sign it could be time to increase!

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