Can I Increase Rent on My New Rental Property?
It may surprise you to learn that homes cost an average of over $450,000 as of 2023. For some people, this has served as an obstacle when purchasing a new home.
For many others, though, it has proven to be a great investment opportunity. When it comes to property management, not everybody understands if they can increase the rent on their investment property.
Let’s take a closer look at everything you need to know about how to handle this obligation.
State Laws Apply
Depending on the state your property is located in, regulations and laws regarding rent increases can vary. Some states allow a landlord to increase the rent every year, while others only permit a rental increase after an existing tenant has moved out and you are looking for new tenants.
To make sure you comply with your state’s laws, it is important to consult with an attorney who specializes in real estate law.
Reasonable Notice Must Be Given
In most states, a landlord is required to give their tenants an adequate amount of time in advance before raising the rent on their property. A standard notice period can range anywhere from 30 days up to 90 days, depending on the state and local laws.
It is important to follow this notice period when increasing the rent, as failing to do so could result in a tenant filing a complaint or even taking legal action.
Discuss the Rent Increase With Tenants
It’s always best practice to discuss any proposed changes in rent with your tenants before making the change.
This will help foster good relationships between landlord and tenant and allow for an open discussion about why the rent is being increased. Otherwise, you may have difficulty finding people to rent the properties that you own.
How Much Can I Increase the Rent?
If there are no rent control or rent stabilization laws in place, you are free to increase the rent as much as you want. However, it is important to keep in mind that in order for the new rate to be accepted by your tenant, you must make sure it is fair and reasonable.
That means that the amount of rent should never exceed what similar properties in the area are renting for.
How Can I Make More Money From My Rental Property?
Working with a property management company can help you maximize your rental property earnings.
A professional will be able to provide valuable insight into the local market, helping you determine what rent rate is fair and reasonable for your area. Additionally, they can help maintain high occupancy rates and handle tenant communication efficiently, all while keeping an eye on the day-to-day operations of managing a rental property.
Managing an Investment Property Doesn’t Have to Be Difficult
Although it might seem complicated at first, making the most out of your investment property is much easier than it seems.
As long as you keep the above information in mind, you’ll be sure to meet your needs. Looking for more information about what we can do? Get in touch with us today to see how we can help.