I’ve resisted raising rents on our properties, because in the long-run, it’s cheaper to keep a good tenant.
Very true. But as appraisals increase, taxes and insurance increase. You have to raise rents sometimes.
What works for me is the following:
I only write 1 year leases. I figure both landlord and tenant need to reevaluate after a year.
After the first year, I have an unwritten rule. If I like the tenant, I will not raise the rent. If I do not like the tenant, I will.
After the second year, I will look at the zillow rent zestimate. I will raise the rent based on the difference between the zestimate and the current rent divided by 2. I figure a good tenant gets a 50% discount on the increase and the place is still below market value.
For new tenants, we start at the zestimate.
Well, raise my rent............
You can still raise the rent, just keep it $100 to $200 below market. Especially in the current environment they will understand. The only people I’ve had leave after a lease ended recently was to buy something. No one I’ve raised rent on has left.
Been there too. I sold all of mine...and glad I did.
As much as you can, you are correct. I got out of the renting game because of bad renters.