To raise the rent on a tenant, the landlord must assess the current market, prepare for feedback and communicate effectively, according to Aimee Miller for AppFolio. It is important to first look at the market to ensure raising the rent is appropriate in the geographic location of the property.Continue Reading
Reviewing the market begins with looking at similar properties in the area and assessing their rent compared to the amenities offered, notes Miller. If a landlord has upscale amenities, it makes sense the rent would be higher. The landlord must also look at the demand for rental units in the area.
The landlord should be prepared for feedback from the tenants after the rent is raised, explains Miller. He should be ready to answer questions and concerns and explain his logic behind raising the rent. Reasons may include higher utility costs, more demand or maintenance costs.
Proper communication is also essential when raising rent, states Miller. This begins with advanced warning about raising the rent, preferably two to three months in advance if possible. A notice should be given to all tenants, as well as multiple reminders so they know when to expect the increase in price. If the higher rent is for tenants who are renewing their lease, a new leasing contract also needs to be written.Learn more about Real Estate