Rental Investments: Increasing Rent

One of the most difficult areas of rental investments is figuring out how to increase rent. Here are a few things to consider about increasing rent on a rental property.

Increasing Rent

Many landlords are hesitant to increase rent on their properties. They feel like it would anger the tenant and potentially cause them to lose business. Because of this, many landlords lose out on potential profits that they could be earning.

Changing Tenants

When a tenant moves out, this gives you a prime opportunity to increase the rent. This way, the new tenant will have no idea how much the old tenant was paying and you can increase the amount to anything that you want.

Periodic Increases

You should also consider implementing periodic increases in your lease. For example, you might consider putting in your lease contract that the rent is going to go up by $50 every year. Let them know that this is to compensate for inflation. If the tenant knows about this when they sign the lease, they are going to be expecting it. If they are expecting an increase, they are not going to get upset or cause any problems for you as a landlord.

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