Good Idea or bad idea?

Raise rent

  • Yes

    Votes: 0 0.0%
  • No

    Votes: 4 100.0%

  • Total voters
    4
  • Poll closed .

'Bmac

macrumors regular
Original poster
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.
 

SteveAbootman

macrumors 6502a
May 12, 2008
602
21
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.
 

Hastings101

macrumors 68020
Jun 22, 2010
2,111
736
K
$400 more? If I were your tenants I'd be giving you my month's notice and looking for a new place.
 

jav6454

macrumors P6
Nov 14, 2007
16,864
1,480
1 Geostationary Tower Plaza
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.
 

samiwas

macrumors 68000
Aug 26, 2006
1,575
3,518
Atlanta, GA
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.
 

stickybuns

macrumors 6502
Oct 22, 2011
384
0
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.
 

'Bmac

macrumors regular
Original poster
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 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.

----------

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 checked with rent control and they only apply when a rental property has 5 or more rental units. I rent 2 seperate houses.
 

jav6454

macrumors P6
Nov 14, 2007
16,864
1,480
1 Geostationary Tower Plaza
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.
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.
 

'Bmac

macrumors regular
Original poster
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.
 

jav6454

macrumors P6
Nov 14, 2007
16,864
1,480
1 Geostationary Tower Plaza
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.
 

Delighted

macrumors 6502
Feb 25, 2012
253
1
Wirelessly posted (Mozilla/5.0 (iPod; U; CPU iPhone OS 4_2_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8C148 Safari/6533.18.5)

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?