Tips for Raising Your Rents Without Losing Your Tenants
Raising the rent can be so emotional sometimes, no matter how nicely you treat your tenants, they would always frown when it comes to raising the rent. To avoid a lot of hassles with your tenants when you raise your rent, you need to treat rent raise like an art. Raising the rent is usually inevitable as costs increase, taxes go up and insurance costs increase as well. But no tenant likes unnecessary and greedy rent increment. So how do you increase your rent without being an unfair landlord?
Have a Rent Raise Policy
As a landlord, you are required to have a bit of marketing research skills. This means that you have to do a bit of research when it comes to raising the rent. The rent raise does not have to follow the market trend so that it doesn’t skyrocket beyond the renters budget. A policy you could employ could be increasing the rent yearly by 2-4%. Usually, landlords employ the 5-10% rental increment in Bangalore but, to avoid your house being vacant beyond a month, increasing the rent gradually usually works wonders. Also, you could offer your tenants the option of extending the rents like signing a two or three years lease instead of one to cut down on increment in the next year thereby doubling the average returns you’d get.
Do Not Get Greedy
When it comes to raising the rent, you have to ensure that you do not get greedy. The rent raise should not exceed 5-8 % anything above 10% will surely drive your tenants away. Also, you have to take your location, property, amenities and your competition into consideration when raising the rent. If you get greedy, the other landlord with reasonable rental price gets your tenants.
Give it A Personal Touch
Even if the tenant rented the house online calling them with the news of increment sounds a bit warmer than just serving them the papers. As you get to know them a little and put an effort into conversing with them and asking of their families, job, and health, the news of the rent increment wouldn’t be like a blow to them. Also do not be an uncompromising landlord. When it comes to increasing the rent, you can come to an agreement with your tenant. So, be approachable or else you might find yourself with an empty house.
Have the Backing of the Law
Rent raise is less strenuous when it is clearly spelt out in the rental agreement. So if your tenants already know that there is a yearly rental increment of 2%, unless otherwise informed, there will be fewer complaints since they were aware of the rental increment from the onset. It will also serve as an evidence in the eventuality that it causes a riff.
Give a Notice
The rent increment might be clearly stated in the rental agreement but a reminder is still necessary. So you have to ensure that your tenants are informed ahead by sending them emails or letters of increments. You are required by law to send a written notice to your renters regarding rent increase and a specific time duration such as 30 or 60 days is given before the lease expires. You should also call, visit in person or utilize the assistance of a property rental management company in Bangalore to ensure that the tenant got your notice.
Give Your Tenants Value for their money
Tenants equally get emotional over their homes and leaving a house where they are treated well is usually a tough decision. So, you have to build their trust, by making upgrades on your property. Ask them for suggestions on ways you can make the property better as well as attend to all request for repairs on time.
Applying these strategies will keep your tenants and still give you a nice Return on Investment (ROI). You could also contact a rental property management company in Bangalore to manage your property and everything that concerns your rentals. Rentprop4u is your best choice when it comes to dealing with rental matters.