Author Topic: Rental Leasing Increase  (Read 28341 times)

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Offline shahshah

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Re: Rental Leasing Increase
« Reply #15 on: June 09, 2017, 06:15:14 PM »
we are looking at 4bd rental somewhere in the 3500-3700 range in the next month or two. we may stay in our current rental or move depending on what we see. there is not a whole lot to choose from and i'm comfortable paying this price BUT a 10% increase puts our current rent 350-370 per month. not sure i would go for that. this is why we are looking to buy. if i can find a 4bd with 2,100+ sq with at least 5,000 sq lot for 800 - 900 range i would probably jump on that instead of paying the rents.

Offline Compressed-Village

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Re: Rental Leasing Increase
« Reply #16 on: June 09, 2017, 07:54:39 PM »
we are looking at 4bd rental somewhere in the 3500-3700 range in the next month or two. we may stay in our current rental or move depending on what we see. there is not a whole lot to choose from and i'm comfortable paying this price BUT a 10% increase puts our current rent 350-370 per month. not sure i would go for that. this is why we are looking to buy. if i can find a 4bd with 2,100+ sq with at least 5,000 sq lot for 800 - 900 range i would probably jump on that instead of paying the rents.

Like I mentioned in my earlier post, a great renter is worth the weight of gold. A good renter will determine wether an increase if any at all. It worth while to not increase anything if you have a responsible person at your property.

Offline SoclosetoIrvine

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Re: Rental Leasing Increase
« Reply #17 on: June 10, 2017, 01:22:57 AM »
we are looking at 4bd rental somewhere in the 3500-3700 range in the next month or two. we may stay in our current rental or move depending on what we see. there is not a whole lot to choose from and i'm comfortable paying this price BUT a 10% increase puts our current rent 350-370 per month. not sure i would go for that. this is why we are looking to buy. if i can find a 4bd with 2,100+ sq with at least 5,000 sq lot for 800 - 900 range i would probably jump on that instead of paying the rents.

If you don't need Irvine schools and okay with Baker Ranch, might have something available soon  8) #shameless but yeah i've seen rent increases from friends who are both renters and landlords in south oc.  It's crazy

Offline USCTrojanCPA

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Re: Rental Leasing Increase
« Reply #18 on: June 11, 2017, 02:10:35 AM »
we are looking at 4bd rental somewhere in the 3500-3700 range in the next month or two. we may stay in our current rental or move depending on what we see. there is not a whole lot to choose from and i'm comfortable paying this price BUT a 10% increase puts our current rent 350-370 per month. not sure i would go for that. this is why we are looking to buy. if i can find a 4bd with 2,100+ sq with at least 5,000 sq lot for 800 - 900 range i would probably jump on that instead of paying the rents.

Like I mentioned in my earlier post, a great renter is worth the weight of gold. A good renter will determine wether an increase if any at all. It worth while to not increase anything if you have a responsible person at your property.

Bingo, the easier my tenant makes it on me the easier I make it on them (i.e. no rental increases) and wait until they vacate to bump the rent closer to market.
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Offline USCTrojanCPA

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Re: Rental Leasing Increase
« Reply #19 on: June 11, 2017, 02:12:20 AM »
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.

They are a hit or miss...best comps are from MLS both from what closed and what the competition is asking for.  If you give me your email address and the address of your rental, I'll send your MLS closed comps as well as the active listings.
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Offline curious george

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Re: Rental Leasing Increase
« Reply #20 on: June 12, 2017, 09:49:04 AM »
How can I find the market rate for the area we live at? by looking at the various websites, I see what was the asking price/rate, but that does not mean that this was the agreed upon rate, isn't that right?

Online daedalus

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Re: Rental Leasing Increase
« Reply #21 on: June 12, 2017, 02:44:57 PM »
If the owner's aren't getting what they're asking, then they're asking too much, and the property has sat long enough for them to have figured it out before they'll agree to something less.  If the market is hot, then rentals priced "at market" will get rented out quickly.  I would never think to haggle on rent in a hot market if I'm needing to get into a place quickly, and the price is fair for what's out there.

Offline momopi

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Re: Rental Leasing Increase
« Reply #22 on: June 12, 2017, 03:29:24 PM »
I've been a landlord for almost 2 decades now.  I only raise the rent when the tenant moves out.  The cost of getting a new tenant is usually a lot more than a small increase in rent.

When you have a tenant who is hassle free and pay their rent on time, it's not worth the risk of losing them just to up the rent by $100.  I can afford not getting that $100, but the prospect of having the unit sit empty for ~3 months plus cost of cleaning/painting/repairs would make me choke.

If you own multiple rental homes, having 2 or more tenants move out around the same time is like losing a high stake Ferengi game of Tongo.


« Last Edit: June 12, 2017, 03:42:39 PM by momopi »

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Offline zubs

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Re: Rental Leasing Increase
« Reply #23 on: June 12, 2017, 07:16:13 PM »
The problem here is my rental went from $2100 back in 2010 to.....What zillow is saying..$2800 now.
It's not $100 difference,  it's $700.  So in 7 years it's gone up $100/year.

Check your current rental house regarding how much you can rent it for at current market prices.  If your renter has been in that house for more than 5 years, you are probably losing $500/month if you haven't raised rents.
« Last Edit: June 12, 2017, 07:22:19 PM by zubs »

Offline USCTrojanCPA

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Re: Rental Leasing Increase
« Reply #24 on: June 13, 2017, 12:26:07 AM »
The problem here is my rental went from $2100 back in 2010 to.....What zillow is saying..$2800 now.
It's not $100 difference,  it's $700.  So in 7 years it's gone up $100/year.

Check your current rental house regarding how much you can rent it for at current market prices.  If your renter has been in that house for more than 5 years, you are probably losing $500/month if you haven't raised rents.

Typically rents have risen by the same amount as inflation or about 3% per year.  Rents have increased about 8-10% from 2015 to now due to an improving job market and economy.  That being said, renters are extremely price sensitive and even a $50-$100/month difference will result in potentially additional time to get the home rented.
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Offline irvinehomeowner

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Re: Rental Leasing Increase
« Reply #25 on: June 13, 2017, 09:04:03 AM »
Getting tenants in Irvine is pretty easy with tons of students looking for homes... you just have to deal with the headaches (and the neighbors complaining to you).

I remember rents went up $500 in 2 years back in the 2000s when we were renting out our Irvine home. We increased the rent $500 after the previous tenants moved out and I remember my father saying that was crazy. We got 5 applicants and ended up discounting the monthly by $100 because they signed a 2-year lease.

If I didn't dislike landlording so much, I would get back into the Irvine rental market... even at low cash flow as long as the rent covers costs. Although Panda's one house at a time equation might work better in Johns Creek... unlike all the companies in Cali, I can't move out of state.
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Offline zubs

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Re: Rental Leasing Increase
« Reply #26 on: June 13, 2017, 10:47:29 AM »
As a private landlord it is difficult to raise people's rents every year, especially when it jumps like it has in the past few years.  So you're looking at a mortgage that is the same with all the regular costs, and the ability to raise rents.  It's quite the power trip.

My renter told me he knows the rents for the area is very high, and he didn't want me to subsidize his living situation anymore.  He is going to leave so I can increase my rent.

Offline eyephone

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Re: Rental Leasing Increase
« Reply #27 on: June 13, 2017, 10:58:57 AM »
Problem solved. Hopefully he didn't come across the story on TI before he told you that he will bounce. Jk


As a private landlord it is difficult to raise people's rents every year, especially when it jumps like it has in the past few years.  So you're looking at a mortgage that is the same with all the regular costs, and the ability to raise rents.  It's quite the power trip.

My renter told me he knows the rents for the area is very high, and he didn't want me to subsidize his living situation anymore.  He is going to leave so I can increase my rent.

Offline Compressed-Village

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Re: Rental Leasing Increase
« Reply #28 on: June 13, 2017, 03:14:43 PM »
That's pretty surprising for his actions. I remembered when I was a renter, myself, I rented a house and for the first three months the owner would comes to the front door on the 1st of the month to collect the rent. It was around 300 hundred below market comp and I was so happy.

Then on a fourth month into my 1 year lease, a note comes from sheriff notify us we have to vacate as the property is foreclosed. At the time I was living with my brothers and I carried few possessions, nonetheless it was a hectic and so much hassle experience, that I would not want anyone to endure. Then I realized the owner at the time when we signed the lease, she known full well that she never pay her mortgage debt and intended to just pocket our rent check. So even when renting you better do your due diligence.

Offline USCTrojanCPA

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Re: Rental Leasing Increase
« Reply #29 on: June 13, 2017, 03:28:51 PM »
As a private landlord it is difficult to raise people's rents every year, especially when it jumps like it has in the past few years.  So you're looking at a mortgage that is the same with all the regular costs, and the ability to raise rents.  It's quite the power trip.

My renter told me he knows the rents for the area is very high, and he didn't want me to subsidize his living situation anymore.  He is going to leave so I can increase my rent.

Sounds like you have a great tenant...hold on to them. 
Martin Mania
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