One of the most frequently asked questions we get from potential San Diego property management clients is – how much can I rent my house for? Sometimes, we’ll talk to owners who have been managing their own property, and they’ll tell us that they have had the same tenant in place for seven years. I always cringe when I hear that, because I know what I’m going to hear next: “I’ve never raised the rent.” Good tenants are important, and you want to keep them in place. But there are other ways to ensure your tenants stay, and the return you earn on your investment is just as important as tenant retention. Today, we’re talking about how to raise rent.
Tenants Get What They Pay For
Raising rent is acceptable, and something that good tenants expect. When you have excellent tenants in the property, you can be sure to keep those tenants by making sure all their needs are met. You can provide outstanding customer service, respond to maintenance and repair needs immediately, and keep the home in great condition. You can make sure that you don’t disrupt valued tenants. Tenants that feel like their needs are important to you will stay in your home, even if you raise the rent to market values.
Understanding the Rental Marketplace
Today, residents are pretty savvy and they know that vacancy rates are low. There isn’t a lot of inventory out there, and the rental prices reflect that. Property managers understand market rents and they can raise your rental rate while still providing a good value for your residents. Tenants want to live in a home that is taken care of, and they want to be appreciated. Sometimes, you’ll lose a tenant when you have to increase the rent. However, your goal is always to earn the market rate or more on your rental property.