Whether you’re new to investing in rental property or have done it for a while, many homeowners report that among their most stressful moments of the rental property journey is if they need to inform their tenants that lease has shifted. But, not all lease alterations need to be a terrible thing, even if the price does go up.
To successfully increase your rental costs, without raising consideration, it’s important that you take these tips from Real Property Management Raleigh to better communicate with your tenants and also show them the value they get based on the shifting costs.
Home Improvements
Every time a potential tenant is choosing their rental house, they’re looking at some of the finer details such as the age of the house, how new appliances are, even if the color scheme of the house is contemporary and matches their design, etc. In this initial selection stage, a renter must decide what fits their budget and are often inclined to go slightly above their scope if a single home meets their needs within another.
However, once in a home there are often restrictions to what a tenant can perform in terms of painting, remodeling, etc. Many renters feel entitled to the home, and also to the initial price they were given. If explained nevertheless, and when the house improvements satisfy their expectations, then your tenants are much more likely not to raise their concern over price rises should they believe they’re receiving benefits.
Housing Market
It’s not hard to feel as if your renters assume you are greedy because you’re raising your prices; however, if you can explain to them where the money is going, this situation doesn’t need to occur. Just as the housing market changes from a buyer’s market to a seller’s market so do the prices.
1 scenario to illustrate that is that of a fast growing city. Over time, leasing listings that can be found near the heart of the city, or any principal attraction are going to naturally increase in price on account of the requirement. Though this might seem unfair, it’s offset by rental prices dropping in surrounding areas and the choice is then left up to the renter where they want to be. It is not a landlord’s fault it is a lively and exciting town, and these natural price increases have to be clarified.
Homeownership
Many renters do not fully understand the benefits that leasing can bring. While they might feel as they pay a lot of money, they don’t typically see the mortgage bill, the taxes, homeowner insurance, the utility invoices and the house loans it took for them to reside in the home they call home. When broken down, all these components add up, and when taxes change or interest begins to build on possible loans, then prices naturally increase.
While your tenant should not know the details of each one these items, it’s a beneficial talking point to explain how you’ve taken on the task of homeownership so that they may take pleasure in the house they live in. All rent increases must be done within the laws, with some niches just allowing for minimal rent increases annually, it is still important to take advantage of this potential extra money.
When correctly communicated, with plenty of notice before any changes are made, you’ll discover it’s likely to have the best of both worlds together with both happy tenants and additional income. If you’d like more information about the services that Real Property Management Raleigh offers, then contact us online or call us at 919-481-0008 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
