Blog Post

Raising Rent is All About Consistency

Dustin Edwards • Jan 31, 2023

Timing is Important When Raising Rent

Many tenants find rent increases frustrating, so many new landlords want to avoid confrontation. Even landlords with experience can find it hard to tell a tenant it’s time to raise their rent. This is a challenging and tactical concept an investment property owner must face. 


Although vacancies and tenant turnover can cost you money, failing to increase rent to offset the costs of maintaining the property can affect your bottom line. Consistency is critical when increasing rent prices. Below is a list of items you should be consistent with, which can make raising rent easier for you and your tenant.


You are a Business First

Although you may have a great relationship with your tenants, keep in mind that you are ultimately running a business. Knowing the financial state of your Long Beach rental properties can help you understand when it's time to adjust the rent. As time passes, the costs of being an investment property owner increases. As an example, maintenance and taxes may increase every year. You'll be taking an overall pay cut, even if by a small amount, if not offset by the incoming rent. If you avoid increasing the rent, it can make it difficult for you to remain in business, as there are caps on rental increases. This can make it difficult to recover financially from bad years.


Understand Laws

California has some of the most strict laws protecting tenants. These laws are constantly changing. Knowing the dos and Don’ts of raising rent is required to avoid unnecessary headaches. Owners often hire a lawyer or property management company with resources. 


Communication

Communicating verbally or through writing about upcoming changes can make it easier to convey that there will be an increase in the rent. Suppose you’re concerned about losing a tenant due to the rent increase. Attempt to inform them casually or informally. Let them know that you value them as tenants and wish them to continue living there. However, there will be an upcoming increase in the rent. This is not meant to be a time to negotiate with the tenant, though you should do your due diligence and research to remain fair and unbiased.


Follow up by sending a formal letter via certified mail. Certified mail will provide a confirmation date that the tenant has received notice. The owners must provide tenants with a 30-day notice for rent increases in any twelve months or 60 days if the owners increase their rent more than once per year. Keep in mind that mail travels slowly.


Rent Increase Clause in Lease

Having potential increases in writing mitigates the surprise of unexpected rent raises. When a tenant signs the lease, be sure they understand that you raise rent yearly. This way, they know from the beginning about the practice and are aware of the situation. Consistently raising rent by even small percentages can make it easier for tenants to accept the raises. This can keep your income strong while maintaining great tenants.


Increasing your tenant’s rent can be stressful. Many tenants take it as a personal attack, especially when they don't expect it. If you need help finding the right words to say to your tenant or need additional help to increase your tenant’s rent, consider calling us at (562) 888-0247, or feel free to fill out our
free rental analysis to see what your rental could yield today.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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