When you want to raise the rent in your St. Louis rental property, you have to do it at the right time and consistently with all your residents. Today, we’re sharing some guidelines for effectively raising the rent at your properties.
Property Management St. Louis: Annual Renewals
If your resident’s yearly lease is coming up for renewal, you have the perfect opportunity to raise that tenant’s rent. The standard of living increase is generally about three percent every year. So, you want to stay within a one to three percent rental increase. If you raise the rent too much, you run the risk of losing good tenants and facing vacancy costs.
Property Management St. Louis: Raising Rent Consistently
When you have more than one rental property and more than one tenant, it’s important to stay consistent. If you go up two percent for one tenant, make sure to go up two percent for all your tenants.
Property Management St. Louis: Shorter Tenancies
If your tenants are at the end of their lease and they only want to sign a six-month lease, you can raise the rent at a premium, and add $35 or $50 a month to the rent. In a situation where your tenants want to go month to month, you can raise the rent between $50 and $75. This is acceptable because you don’t know when they will give you their 30 day notice.