In all likelihood, for $100/month extra,I’d eat the cost…
If you raise the rent, the tenant is obviously not going to be happy. And once you do that, he/she is going to motivate to live somewhere else. So at that point, IF you plan on raising the rent it won’t matter if it’s $5/month or $100/month more…You’ll piss them off either way, so you might as well raise the rent one time as close to the market price as possible..
But for $100 more/month, it wouldn’t be worth my time of risking the tenant moving out and dealing with a vacancy…. Let’s put it to you this way. If the tenant leaves, you’re going to be out at least 1 month of rent. that’s $1550 right there… It will take you 1 1/2 years with your new rent price of $100 more/month just to recoup what you lost by the person moving out… And you don’t know how long that tenant will stay versus the current one.
If you like your current tenant, I’d do absolutely nothing..
Not worth it….
$100/month more isn’t bad…
One of my tenants (in bay area) I was renting to them a good $500/month below market value for 2 years. Now that was ridiculous. I did raise the rent to $450/month price, with the intention of settling for $250/month…. If I raised it first by only $250/month, he would have been pissed anyway ,and be asking for $125/month, to which I would have said no.. So I just raised it by the full amount, and then discounted it to $250/month for being a good tenant…If I didn’t like him/her, I wouldn’t have lowered it and just had him move out…
…And yes…he was pissed, but after looking around he realized he was still getting a much better deal than other places…..
