[quote=AN][quote=livinincali][quote=AN]You can do that, but you’re increasing the risk of your renter moving. You have to decide for yourself whether paying for vacancy, cleaning, maintenance is less than the extra rent you get. Sometime it is, sometime, it isn’t. You might think 1-2% hike is far from unreasonable, but it doesn’t matter if it reasonable or not. It’s all about if that’s enough to make your tenant move or not.[/quote]
1 month of vacancy is 8.3% of the total annual rent. It takes 2.8 years before you break even on a 3% increase in rent if increasing the rent results in the tenant moving out. Obviously it all depends on how inconvenient it is for the tenant to move and if they might already have plans of moving. Some people will just pay the extra $25-50 month, some will look at at other options and still decide to stay. Some will just move because they don’t like the principal or were just looking for an excuse to move anyways.[/quote]Yep, you’re just increasing your risk of having vacancy by raising rent. How much risk, only you can guess depending on your relationship with your tenant. But it’s definitely an increase compare to not raising rent.[/quote]
Agree with AN, livingincali, and deadzone.
Are your tenants doing basic maintenance and repairs? That counts for something, too. Chances are, if they aren’t calling you, they’re doing it themselves.
Most importantly, you know that you like these tenants. You don’t know what you’ll get if they move out.
