Increasing the rent on your rental apartments is something every landlord ultimately experiences. Like any other industry, the rental market is impacted by economic trends creating an opportunity for landlords to ask less or more for rent.

A landlord might decide to increase their apartment rental prices to increase their profits, to accommodate tax increases, to pay for property improvements or maintenance or to match the most recent market rates.

The secret to increasing the rent price appropriately is doing so in such a way that it keeps the vacancy rates low and limits turnover.

So, the question is, how to increase the rent price of your apartment without losing tenants. Below are a few steps to make it easier for you if you’re facing such a dilemma.

Check The Local Rental Laws

Before you decide to raise the rent, it’s important to ensure you fully understand the local rental laws. Both local and state laws usually vary in terms of increasing rent, with some regions not allowing rent increases, while other areas have rental caps which stop owners from increasing rent past a certain percentage amount.

Make Rent Rise Part Of Your Lease

If your apartment is in an area where you’re allowed to increase the rent, then it’s highly likely the tenants are expecting you to review the rent every year. Nonetheless, you still want the rent rise known by making it an aspect of the original lease to avoid blindsiding the tenants.

Ensure the original lease includes information about the rent rise like what amount would be increased every year.

Decide How Much You Can Raise The Rent

Knowing what to ask for in the rent rise largely depends on the market value of similar apartments in the regions where you live. You can start by doing some research and compiling a list of the rent from other similar apartments, and use the price to figure out your new rent. For instance, if the average rent charged for a two-bedroom with the same amenities is £1,500, it won’t is a good idea to increase the rent to £1,700.

It’s also important to consider the vacancy rates. You can do this by determining the number of units that are vacant in the surrounding apartments. Is your apartment more popular in the area? Do you have any issues finding new tenants for the empty properties? Figuring out whether or not your tenants will easily find another apartment after you’ve increased rent will help decide whether it’s worth it.

A normal rent rise will range between 3% and 5%, but that depends on your current rant, local rental laws, and your situation.

Make Upgrades And Improvements To Your Apartments

If you have made substantial upgrades and improvements to your rental apartments while your existing tenants were residing in them, you might have a valid reason to increase the rent price to reflect these improvements. However, if you’ve ignored maintenance and repair requests from your current tenants, you possibly don’t have any valid reason to ask for a rent rise.

Notify The Tenants

After you have finally made up you’re made to increase the rent and decided how much you want to increase the rent, you must notify the tenants. You should do this 45 to 60 days before the lease is terminated.

References

House prices set to continue rising as supply shrinks. (2021, July 8). BBC News. https://www.bbc.com/news/business-57754558

Biron, C. L. (2020, January 31). Unaffordable rental housing may be ‘new normal’ in the United States. U.S. https://www.reuters.com/article/us-usa-housing-rents-idUSKBN1ZU0IC

So your rent is about to spike. Can you avoid paying more? (2021, August 21). The New York Times – Breaking News, US News, World News and Videos. https://www.nytimes.com/2021/08/21/realestate/so-your-rent-is-about-to-spike-can-you-avoid-paying-more.html

How to Increase the Rent Price of Your Apartment

Increasing the rent on your rental apartments is something every landlord ultimately experiences. Like any other industry, the rental market is impacted by economic trends creating an opportunity for landlords to ask less or more for rent.

A landlord might decide to increase their apartment rental prices to increase their profits, to accommodate tax increases, to pay for property improvements or maintenance or to match the most recent market rates.

The secret to increasing the rent price appropriately is doing so in such a way that it keeps the vacancy rates low and limits turnover.

So, the question is, how to increase the rent price of your apartment without losing tenants. Below are a few steps to make it easier for you if you’re facing such a dilemma.

Check The Local Rental Laws

Before you decide to raise the rent, it’s important to ensure you fully understand the local rental laws. Both local and state laws usually vary in terms of increasing rent, with some regions not allowing rent increases, while other areas have rental caps which stop owners from increasing rent past a certain percentage amount.

Make Rent Rise Part Of Your Lease

If your apartment is in an area where you’re allowed to increase the rent, then it’s highly likely the tenants are expecting you to review the rent every year. Nonetheless, you still want the rent rise known by making it an aspect of the original lease to avoid blindsiding the tenants.

Ensure the original lease includes information about the rent rise like what amount would be increased every year.

Decide How Much You Can Raise The Rent

Knowing what to ask for in the rent rise largely depends on the market value of similar apartments in the regions where you live. You can start by doing some research and compiling a list of the rent from other similar apartments, and use the price to figure out your new rent. For instance, if the average rent charged for a two-bedroom with the same amenities is £1,500, it won’t is a good idea to increase the rent to £1,700.

It’s also important to consider the vacancy rates. You can do this by determining the number of units that are vacant in the surrounding apartments. Is your apartment more popular in the area? Do you have any issues finding new tenants for the empty properties? Figuring out whether or not your tenants will easily find another apartment after you’ve increased rent will help decide whether it’s worth it.

A normal rent rise will range between 3% and 5%, but that depends on your current rant, local rental laws, and your situation.

Make Upgrades And Improvements To Your Apartments

If you have made substantial upgrades and improvements to your rental apartments while your existing tenants were residing in them, you might have a valid reason to increase the rent price to reflect these improvements. However, if you’ve ignored maintenance and repair requests from your current tenants, you possibly don’t have any valid reason to ask for a rent rise.

Notify The Tenants

After you have finally made up you’re made to increase the rent and decided how much you want to increase the rent, you must notify the tenants. You should do this 45 to 60 days before the lease is terminated.

References

House prices set to continue rising as supply shrinks. (2021, July 8). BBC News. https://www.bbc.com/news/business-57754558

Biron, C. L. (2020, January 31). Unaffordable rental housing may be ‘new normal’ in the United States. U.S. https://www.reuters.com/article/us-usa-housing-rents-idUSKBN1ZU0IC

So your rent is about to spike. Can you avoid paying more? (2021, August 21). The New York Times – Breaking News, US News, World News and Videos. https://www.nytimes.com/2021/08/21/realestate/so-your-rent-is-about-to-spike-can-you-avoid-paying-more.html

 

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