In the past 15 years, some stay a long time, some buy regardless of rent level, some should be shown the door. Modest raises on a good tenant aren’t a problem: examples:
Property A, 2700 sf in 92027
Tenant 1, stayed 9 years from 2003 to 2013, raised rent from $1900 to about $2000. He was a single man staying in a 2700 sf home, his daughter was there some of the time. He was a low impact tenant and we were out of the country so I didn’t want to mess with turn over.
Tenant 2: same property from 2013 to 2016, rent went from $2000 to $2900. We were just too low. Tenant 2 bought a place but the rent increase didn’t drive the decision, he just needed to wait 3 years after the short sale.
Tenant 3: rented at $3250 and is very happy. Rent is flat 2 years running. Will likely raise by $50 this year but still below market.
Property B (down the street from A) slightly larger 2900 sf in 92027
Tenant 1: leased in 2013 for $2650, went up to $2800 over three years. Tenant eventually moved out to buy as 3 year post short sale period passed.
Tenant 2: from $2800 to $3150, stayed less than year 2016 to early 2017, he broke lease
Tenant 3: went from $3150 to $3500 and signed three year which will likely go to 5 years at $3620, $3740 year 3, then likely $3800 year 4 and $3900 year 5.
Keep in mind similar house down the street was $2000/month in 2012.
Property 3 (4S Ranch) 92127
Tenant 1: 2013 to 2015, went from $2100 to $2500, moved out as he didn’t want to pay for solar I installed
Tenant 2: 2014-2017, went from $2700 to $2950, I asked to leave as they didn’t communicate well
Tenant 3: 2017-2018 at $3150, will go to $3200, likely $50 more after that
Property 4 (Jack’s Pond/San Marcos) 3400 sf 92078
2014 to today: same tenant, have gone from $3150 to $3450 but did add solar, don’t expect tenant to move anytime soon
Property 5: foreign oil rich country, when oil was $150/barrel, got $4000/month, now get $2300, currency declined, same tenant for 10 years now
