Is It Time To Raise Rents?

Screen Shot 2014-06-24 at 6.27.33 PMNo one wants vacancies! Before raising rents it is time to do a bit of local market research. Checking neighborhoods and communities similar to your property may hold the answer to your question. Your objective is to determine how the rental market is performing in your area.

Learn how many units similar to yours have recently rented? What is the vacancy rate? Another tactic is to become a “secret shopper”. Many businesses in different industries utilize a secret shopper to understand what the competition is doing. Some real estate owners do this as well. Search similar properties advertised for rent. Search all of the different sources a person looking for a home could use. Look at the size, upgrades, condition and amenities and what they are
asking for in rent.

How long has it been since you painted your rental? How old is the carpet? Are the counters formica mauve and the competition is granite and laminate wood floors? These are all pieces of the puzzle to think about when you are considering raising the rent. If you have a tenant have they paid their rent on time and keeping the home in good condition? It is less costly to keep a good tenant then to have vacancy days to get a new one.

Information is deemed reliable but not guaranteed.