Landlord Question and Answer Forum

I am a first-time landlord, with only one property to my name, so I would greatly appreciate some insight from a seasoned professional. Is it standard practice to increase rent annually? I have great tennants, and I have had no problems whatsoever in the last year. I am comfortable with the amount of rent I receive, so exclusive of an increase in property taxes, insurance premiums, etc. Should I increase the rent as a standard practice?

Standard practice is 6% to 10% yearly but its up to you.

Posted by Donald G, MA on Saturday, April 3, 2010

If your tenant pays on time and keeps your property in good order and doesn't complain about anything - consider yourself very lucky and don't raise the rent unless you have major increases in tax or insurance. Great tenants are hard to find

Posted by Barbara A, SC on Monday, April 5, 2010

I agree with barbara.... consider you annual income if you have the property stand empty for a month? what if that happened every year? If you are turning over tenants all the time, you will not make money. So, unless your property is highly desirable, and rents at the drop of a hat.... keep the good tenants

Posted by Deb S, NY on Tuesday, April 20, 2010

Brian there is 2 ways to look at it 1. tenants get used to increase and expect it 2. tenants that are not used to it bulk at the idea when you finally have to increase If you increase by moderate amounts they dont feel like they getting hit hard you have to realize when your costs and repairs go up...who will be paying for it

Posted by Cindy H, NY on Wednesday, May 12, 2010

I think it HIGHLY depends on the market you are in. It would be unreasonable to increase rent if the market around you does not dictate the rent you will be charging. Furthermore, if you have really good renters (pay on time, keep the property up, etc.) I think you should think carefully about raising the rent yearly. When I was a renter I would have NEVER stayed at a place that raised the rent every single year. Every two years if it was reasonable, but every year forget it. Rentals are a dime a dozen, and unless you are in a really high demand area its silly to raise the rent yearly. Our rental market here is not great for supporting yearly rental increases. Even the large management companies do not increase rents yearly. So this "its standard practice to raise the rent" is not as standard as some like to think.

Posted by T K, CO on Wednesday, May 12, 2010