Author Topic: Rental Leasing Increase  (Read 28821 times)

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Offline Compressed-Village

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Rental Leasing Increase
« on: June 03, 2017, 10:29:15 PM »
My rentals for the past several years, each year when tenants renew a lease term I've always increase the rent rate by 3 to 4 percents. This year with the strong job market and tight inventory I am contemplating raising the rate about 10 percents. What would you do if you are a leasing your rental(s)? There are a lot of great applicants out there with good paying jobs that wanted to rents in Irvine.

Offline best_potsticker_in_town

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Re: Rental Leasing Increase
« Reply #1 on: June 04, 2017, 12:15:31 AM »
Depends what type of property you have and what it's rented for now. If it's a 1 or 2 bedroom condo, there's plenty of inventory throughout Irvine. If it's a newer, 3+ bd SFR or detached, and in the mid-$3k range...there's less competition and more demand. Is current rent at or below market rate? Also, in case you didn't know, California law requires 60 day written notice for an increase over 10%. 10% or less is 30 days.

All that said, general words I like to live by: Don't get greedy.

Offline paperboyNC

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Re: Rental Leasing Increase
« Reply #2 on: June 04, 2017, 07:16:17 PM »
In general I recommend limiting increases to 5% and waiting for turnover to ask for a higher increase.

Offline daedalus

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Re: Rental Leasing Increase
« Reply #3 on: June 04, 2017, 07:50:07 PM »
I've only rented in a few places in my life.  One place evicted me due to the owner selling the place, but I likely would have left had the rent gone up.  The other 2 places got a 30 day notice from me as soon as they gave me a notice of a rent increase.  I actually liked the owners of the last place I rented, but the rent going up was a strong impetus for us to put an offer in on our first home. 

If the rent is still fair after the increase, it may not matter.  If you end up above market, then be prepared to have a little vacancy time.

Offline nosuchreality

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Re: Rental Leasing Increase
« Reply #4 on: June 04, 2017, 08:26:50 PM »
Depends on what message you want to send to the tenant.

It also depends on how you've written your contract.

Keep in mind, the more you act like a big complex LL, the more likely the tenant will behave like a renter.  Right down to making you replace burned out light bulbs if you haven't spelled it out in the contract.

Offline Compressed-Village

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Re: Rental Leasing Increase
« Reply #5 on: June 05, 2017, 09:44:54 AM »
All are well said!!! A good renter(s) is worth the weight of gold. Good renters will be hassle free.

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Offline Kangen.Irvine

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Re: Rental Leasing Increase
« Reply #6 on: June 05, 2017, 07:56:48 PM »
Be prepared to estimate costs of refurbishing between tenants. Those costs alone and missed rent during a vacancy may make you reconsider anything too drastic as well.

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Offline zubs

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Re: Rental Leasing Increase
« Reply #7 on: June 06, 2017, 03:05:41 PM »
You guys ever use Zillow to look at rental numbers?

Offline Compressed-Village

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Re: Rental Leasing Increase
« Reply #8 on: June 06, 2017, 03:09:25 PM »
You guys ever use Zillow to look at rental numbers?

All the time. What # are you referring to?

Offline RandomG

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Re: Rental Leasing Increase
« Reply #9 on: June 06, 2017, 05:01:41 PM »
And that's exactly why I signed a two year lease. Rents around me have already gone up 4-5% since December, or even more for upgraded rentals.

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Offline zubs

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Re: Rental Leasing Increase
« Reply #10 on: June 07, 2017, 01:03:12 PM »
Are the zillow rent prices very good?  My renter is leaving at the end of the month, and it seems like from Zillow, I can increase my rents about 20%.  I wonder how accurate it is.

Offline Compressed-Village

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Re: Rental Leasing Increase
« Reply #11 on: June 07, 2017, 03:43:59 PM »
Are the zillow rent prices very good?  My renter is leaving at the end of the month, and it seems like from Zillow, I can increase my rents about 20%.  I wonder how accurate it is.

That mean that you were very generous with the previous tenant. I would take the current comps from your immediate area and shave off a hundred or two to attract applicants. Once you have a handful you choose the best from the pool and renters knows the current rate and thank you for the discount.

Do take into consideration of your listing. If your house decked out and super nice, you will get renter very quickly. If it needed repair now is the time to spruce it up.

Offline best_potsticker_in_town

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Re: Rental Leasing Increase
« Reply #12 on: June 07, 2017, 04:12:28 PM »
Or you can nicely ask one of the many agents on here to see if there are some recent comps in the area...

Offline zubs

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Re: Rental Leasing Increase
« Reply #13 on: June 07, 2017, 04:48:51 PM »
My current renter was caught up in the Lee Baca hide the prisoner from the FBI scandal...I think he spent time in federal prison.  He had to take a huge pay cut because he can't work as an LEO anymore.  Since the rental is mostly paid off.  I decided to keep his rents low.  Anyway he's leaving and I'm gonna raise my rental rates.

« Last Edit: June 07, 2017, 04:55:24 PM by zubs »

Offline Compressed-Village

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Re: Rental Leasing Increase
« Reply #14 on: June 07, 2017, 07:28:43 PM »
Celebrity!!! That alone will get you a higher rate😀😀😀😀😀

 

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