Property owners increase their rates over the years. If you’ve been raising yours, then good for you. However, it’s not always easy to raise rental rates. If you’re having a hard time implementing changes, here are tips to help you pull this off. The last thing you want, after all, is to lose good tenants.

Start with Market Research

Carry out market research before you raise the rent. Find out how much rent prices have gone up in the last few years in your area. That’s a good reference as to how much the increase will be. If you go too high, you’ll lose tenants, so don’t be rash.

Use Screening Services

If you have vacancies right now, this is the perfect time to find new tenants. You can set the new rate for them. To improve your chances of finding a tenant sooner, use tenant screening services. With the reports that these screening services offer, you can be faster and much more efficient in how you winnow down those applications.

Fix Amenities

One way to reduce complaints about you raising your rate is to provide your tenants with the best building and home environment possible. If there are any problems with the stairs, lighting in the hallways, or the elevator, you want to make sure you get those issues fixed right away. By showing your tenants that there’s no shortage to the way you take care, maintain, and improve the building, they’ll see and know where the money is going. That’s bound to help cut down on any of the complaints.

Know Your Reasons

Be ready to talk to your tenants. When they ask you why you’re raising the rent, make sure you can explain that. Cite maintenance costs. This will tie in well if they see the continued improvements that you or your staff make to ensure that every problem in the building is promptly resolved.

Cover All the Bases

Aside from maintenance costs, you can also cite property taxes, utilities, insurance premiums, and others. By knowing all the reasons that the rent must be raised, your tenants should have little to no problems agreeing with the new monthly rate. However, that also means the money must go to where you’d promised they’d go. If you cited utilities but do little or nothing to fix the utilities in the building, that will only raise suspicion among your tenants. You could end up losing plenty of good, long-term tenants as a result.

Stay Calm

When you discuss the rental increase, make sure you stay calm throughout the discussion. Listen to what your tenants say. But be sure to communicate your thoughts. Educate them on the market rate if you have to. By being willing to talk, your tenants should see the rental increase as a justified move on your part. That’s the goal. If you approach the subject with temper, that will only chip at your relationship with them. Build trust with the right approach. That will make it more likely for your tenants to renew their leases with you.

20650cookie-checkHow to Successfully Raise the Rent and Avoid Losing Good Tenants?

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