Renting out your investment property is akin to running a business. To be a profitable rental property owner you need the correct combination of a well priced property and responsible long-term tenants. So how can you engender a favourable landlord-tenant relationship when it is time to raise the rent.
Be in touch with the market
Research the rental property market in your area to make sure the increase you are making is in line with market rates. Good tenants will understand the need to pay a higher rent amidst a tightening rental market and low vacancy rates.
Maintain your rental property
As with all forms of business, success comes from careful planning and efficiency. Attending to small problems quickly, such as a leaking tap or a jammed window for instance can stop minor irritations from escalating into major issues. As an added bonus, your tenant will be happy, making them more likely to be long-term tenants.
Rent increase notices and reminders
When the market indicates a time for a rent rise, then you’ll need to give your tenants fair warning in advance. Sixty days are the norm, but make sure you check with your agent first. Send a letter and have your agent explain all the terms in full to them. This way, tenants can expect their rent rise in the near future, without the shock of an overnight increase. If you mange the property yourself then follow the same time frames and procedures.
When it comes to raising the rent, tenants respect and respond better to landlords that are professional in their approach. Conduct yourself professionally and listen to any requests or concerns your tenants may have and always follow up any discussions with your tenants in writing.
A professional manner is important but don’t forget you are dealing with people too. Good rental property tenants can be difficult to come by, so don’t push them to hard for the sake of a few extra dollars.