Raising Rents

What Landlord is not interested in raising rents?  The idea of a higher percentage of return from your investment is one of the reasons your acquired the property in the first place.  Yet, many landlords fail to properly raise rents, or worse yet use the "feel method" when deciding whether to and push through an increase.  Evaluating the proper market rental rate for your property is a science that includes many factors, and the facts are that some people are better than others at understanding that on the fly.  However, I am here to tell you that "feel" method is not a smart method for landlords (especially individual landlords) to employ regardless of whether you think you fall into the category of someone who is good at evaluating the market quickly.  Use a strategic method for raising rates.  My favorite is simply to employ a spreadsheet and a set of dates that you feel are realistic to increase.  You only have a couple of chances (if that) in the year to actually put through an increase, don't waste those opportunities.  Think about whether you want to raise your rents well in advance of the new lease signing.  Figure out the best time to pass along the rate increase to you new or current tenant.  Always use a transparent method of communicating this increase, and leave yourself some time to negotiate.  The most important factor is keeping your place rented, however don't be afraid to raise your rents, especially when they are under market with a long term tenant they don't want to move!  Keep your places in good shape, use a strategic method, and enjoy the extra cash flow!