I own some real estate. I have tennants. Very good respectable tennants. Recently property taxes were raised and utility rates were raised. I am deciding to raise rents. My tennants live from paycheck to paycheck so I feel bad about raising their rents. I can't absorb the property tax increase and utility rate increase any longer. Do you think it is too much to ask for $400 MORE a month in the rents they pay? I'm trying to avoid it if at all possible but I NO LONGER see a way for me NOT to raise rents.
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Good Idea or bad idea?
- Thread starter 'Bmac
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My goodness. A 400 dollar a month increase. That's a significant amount for someone who lives paycheck to paycheck to have to pay. You have to do what you have to do, but just be prepared if they leave due to the increase.
$400 more? If I were your tenants I'd be giving you my month's notice and looking for a new place.
What's the current month's rent and what are they paying for? (how many rooms, bathrooms, etc)?? Also, where is this real state... just a general area.
I can't really asses if raising is fair based on what you told me alone.
I can't really asses if raising is fair based on what you told me alone.
Agree with jav. We'd need to know how much the rent is now. If it's $500, and you want to raise it to $900, then that's an 80% increase...pretty big and probably not doable for your tenants. If it's $4000, and you want to raise it to $400, then that's a 10% increase...not that terribly. But if it's $4000 and you have renters living paycheck to paycheck, then there are other things we should be shaking our heads about.
Have you checked if there are rent control laws in your area? You could be opening yourself up to a lawsuit if you're not careful.
I am talking about the two houses I own in Northern New Jersey. The both houses are 4 bedrooms, 2 bath, EIK, living room, full basements in both. Nice yards. Both have 2 car garages. Rent now is $1100 a month.
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I checked with rent control and they only apply when a rental property has 5 or more rental units. I rent 2 seperate houses.
So each house is $1,100 a month? You pay utility bills (gas/water/electric)? I saw something like that but wan a make sure.
So far it seems $1100 a month is quite cheap. Here in New Orleans (Metairie/Kenner area), a house starts at $1000 (no bills) in a sorta-ok area.
Yes, I pay ALL utility bills. The ONLY utility bill THEY pay is their phone bills (cell and landline). Yes, each home is rented for $1100 a month. And the area in Northern New Jersey is sorta-ok too.
Then yes, a price increase does sound fair. However, try to ease them in. Start with a $200 increase and work your way up.
Thank you very much. I think I will do just that. Start with a $200 increase and see how it goes. That sounds very fair to me.
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I definitely understand that you have to raise their rents but damn! I never knew you could raise it by that much. Arn't there rent control laws about this?
I definitely understand that you have to raise their rents but damn! I never knew you could raise it by that much. Arn't there rent control laws about this?