Whether it’s your very first time investing in rental properties or whether you’ve done it for decades, many homeowners report that one of the most stressful moments comes from notifying their residents regarding rent increases. Continue reading to learn how you can avoid common mistakes and maintain a healthy relationship with your residents.
When evaluating your rental costs, learn how you can lessen your resident’s concern, it’s important that you take these tips from Real Property Management Investment Solutions to communicate with your residents and also show them the value they get based on the changing costs.
Every time a potential resident is picking their rental home, they’re taking a look at a few of the details like the era of the home, age of appliances, even whether the color scheme of the house is contemporary and fits their design, etc.. Within this first set stage, a renter must decide what is within their budget and consider all factors. Once in a house, there are often limits to what residents can perform with respect to remodeling, painting, etc.. Many residents feel entitled to the home, and also to the initial price they signed the lease for. When the repairs/improvements have not only been explained but also followed through on, your residents are significantly more likely to understand and be accepting of the rent increase.
It’s easy to see how a rent increase might be perceived as being greedy so take this opportunity to share with them why the increase is occurring so as to avoid as much negativity as possible.
One situation to illustrate this is that of a fast growing city. Over time, the price of lease listings found near the busiest parts of town will naturally increase because of their proximity to various desired venues. Though this may seem unfair, it’s offset by leasing costs falling in surrounding areas but regardless, the decision ultimately falls upon the resident to determine where they wish to live and whether they’re willing to pay the necessary price to do so. Even though individual landlords are not responsible for natural cost increases in any given bustling area, an attempt should still be made to explain as best as possible.
Many residents do not fully understand the advantages that leasing can deliver. While it may seem to them that they’re paying a great deal of cash, they are typically unaware of the mortgage invoice, taxes, homeowners insurance, utility bills and house loans required for them to make a life there. When broken down, each one of these components accumulates resulting in an overall cost increase.
Even though your resident should not be expected to understand the particulars of any of these previously mentioned items, it is beneficial to describe how you’ve taken on the job of homeownership so they may have a better appreciation for the house they live in. While a few markets allow for minimal annual increases, there is some wiggle room to earn a profit as long as it stays within the realm of your areas legislation.
When you ensure proper communication before modifications you’ll discover that it’s far more likely to find yourself having both satisfied residents as well as additional income.
If you are interested in having your property managed by Real Property Management Investment Solutions, have more questions, or just want to speak to one of our team members, then contact us online or call us directly at 616-419-8880 today!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.