Why Raising Rent Might Cost You Rent
It’s renewal time for your lease and you know what that means…more money! Or does it? Managing a property requires a fair balance between giving your client what they want and delivering what they actually need for their real estate investment. Property managers commonly find themselves explaining why raising rent an additional $100 would not be beneficial to their client’s bottom line.
Let’s face it, living is becoming more expensive these days. Austin alone is growing at a shocking rate and quickly running out of available, affordable housing. Property owners are feeling the increase as well through increased property taxes. This alone could stir the thought that raising rent on tenants is harmless. While this is true, it’s more important for all aspects to be considered. Have the tenants had a positive experience with the property? How many repairs were needed throughout their lease and term? How fast were those items remedied? Did the property manager treat them fairly?
When considering these aspects of the lease, you can fairly decide a respectable increase while reviewing the comparables. If you get too greedy in the process, you could easily find yourself facing a turnover, possibly costing thousands. With this chance, is it really worth the risk? Examine the angles and be prepared for the worst. If you have the right services in place, you’ll be steered towards the path that benefits your long term goal.