How to Raise Rent Prices Without Losing Tenants — A Guide for Landlords

It whitethorn look obvious, but raising rent and determining rent pricing strategically is an easy measurement to summation your rental revenue each month. However, mounting the rent value isn't that easy. Raising rent without doing the due mentation and marketplace investigation will pursuit distant imaginable tenants, and you'll beryllium worse disconnected than you started.

Here are a fewer tips to raise your rent prices and immoderate alternatives that will summation your gross arsenic well.

Related: How to Set a Fair Rent Price for Your Properties

Conduct research

Understanding the marketplace is simply a surefire measurement to ethically and accurately raise rent prices. Without getting a consciousness for the competition, it tin beryllium easy to overprice aliases underprice your spot — you could either scare distant imaginable tenants pinch your lofty value tag aliases miss retired connected much income if you value the portion excessively low.

When mounting a rental price, you must warrant it pinch information collected from your vicinity and find a rent-to-value ratio using comparable properties successful the market. Market rent is the expected magnitude of rent that your spot tin make each month. This metric is based connected various factors for illustration location, amenities, the information of the portion and the rent value being charged by comparable properties successful the area, called comps.

Compare mean rent prices erstwhile considering these properties. Comps are a landlord's champion friend erstwhile justifying a rent increase. They tin thief you understand wherever your property's price fits successful pinch the wide marketplace and tin constituent retired imaginable improvements you tin make to your portion to let for an summation successful rental income.

For example, if location is simply a portion crossed the thoroughfare that charges $200 much a period than yours, find retired why. Does it person nicer flooring aliases appliances? Do they see definite utilities for illustration state aliases h2o successful their rent? Once you've identified these differences, you tin measurement the cost-benefit study of doing renovations and charging much aliases keeping your portion priced as-is.

While you tin ever complaint much without doing these renovations, it is important to support successful mind that renters are besides doing marketplace study while shopping for a caller place. If you are pricing your portion importantly supra marketplace rate, buyers will astir apt not moreover want to circuit and springiness it a chance to warrant that higher rate. If you complaint a premium price, beryllium prepared to supply premium amenities and features.

Adding value

If you determine that you are going to undertake a renovation process and unfastened caller possibilities for accrued rental income, beryllium judge to take your renovations carefully. While a caller overgarment of overgarment aliases caller carpet whitethorn beryllium basal improvements, they won't needfully warrant an summation successful rent.

Some of the astir effective, high-ROI improvements are amenities that make your tenant's life easier. Integrated, smartphone-accessible features specified arsenic smart locks aliases ambiance power whitethorn promote younger tenants to take your spot complete different portion that does not boast these features.

It's important to statement that high-tech features thin to attract younger renters. If you are targeting a renter who is older than a millennial, you whitethorn beryllium amended disconnected doing much traditionally high-converting improvements for illustration replacing countertops aliases adding/renovating a bath aliases kitchen.

Related: How to Reduce Tenant Turnover to Increase Your Rental Revenue — 3 Essential Tips for Landlords

Other ways to summation revenue

If you do not want to acquisition the clip and effort basal to do renovations and warrant a higher rent rate, location are different ways to summation gross arsenic a landlord beyond charging a beautiful penny each month.

Reduce tenant turnover

Finding caller tenants each twelvemonth is not only time-consuming; it's besides expensive. Marketing and tenant screening procedures tin return clip and money that you whitethorn not beryllium consenting to walk each azygous lease term.

To trim money spent connected acquiring caller tenants, effort to return the clip up-front to find awesome ones that look fresh to enactment for aggregate terms. Finding awesome tenants will return much clip and effort astatine first, but you will beryllium grateful for that effort erstwhile you don't person to do those tasks each complete again each clip a tenant moves aft a azygous lease term.

Collecting rent online is different awesome measurement to trim tenant turnover. Allowing tenants to salary online is easier, quicker and much convenient than checks aliases cash. By providing an avenue for tenants to salary from their telephone aliases laptop, you will person a leg-up complete landlords who do not connection this benefit, encouraging much tenants to resign pinch you alternatively than spell elsewhere.

Add reasonable fees

Adding fees is different measurement to summation gross without raising the rent price. Keep successful mind that these fees must beryllium reasonable — excessive aliases exploitative interest incurrence will person the other effect of chasing rental gross away.

Some reasonable fees that galore landlords instate are pet, parking, lease termination, landscaping and applicant fees. Pet and parking fees are add-ons for tenants wishing to bring a pet aliases person a parking spot adjacent their unit. Lease termination fees are a awesome measurement to trim the likelihood of a tenant abandoning their lease earlier their lease word is up. Landscaping fees tin beryllium charged to tenants who want their lawns mowed aliases landscaping kept up, and applicant fees are charged to those who are willing successful the spot and consenting to acquisition your tenant screening methods.

Related: Increase Your Rental Property Revenue by Making This One Simple Change

Raising rent tin beryllium a awesome measurement to summation rental revenue. However, raising rent without considering the surrounding marketplace aliases imaginable renovations to your spot is simply a bet that landlords should not undergo. Chasing imaginable tenants distant will person the other effect of lowering your revenue, truthful beryllium observant pinch immoderate rent increases you determine to instate.