Blog Post

What to consider BEFORE you raise rent

Dustin Edwards • Nov 11, 2022

Raising Rent is Important for Both Owner and Tenant

The rent placed on your Long Beach investment properties determines the amount of income that property provides. Although wanting to raise your rent to maximize the amount of income any property can provide seems enticing at first, there are a few items to consider BEFORE you give your tenant the news that their rent will be increasing.


Today we’ll be discussing what you should do BEFORE you raise your rent and how to properly communicate this to your tenant.


Communication

Tenants don’t often like the idea of their rent being increased. A simple way for this not to be a surprise to them is to communicate during the lease signing that you will be increasing the rent a number of times during the lease. Also remind your tenants with enough time for them to prepare for the increase in rent. This time will be useful to them so they can adjust accordingly.


Moratorium 

As a way to help families cope with the recent global pandemic, the federal government implemented a rental moratorium. Essentially it is a period of time the government has allowed for rent to be delayed. Although for the majority of the country the moratorium ended in 2020, Los Angeles county chose to extend the moratorium until the 30th of June 2023. This can cause a delay on the ability to collect rent whether or not you've decided to increase it. 


It's necessary for you to do your due diligence to check if it's in effect in your area. To be sure your property is not subjected to the moratoriums it's helpful to ask your full service property management company if you're currently affected by it. As they should be aware of the local laws and how they are changing. [insert link]


Maximum Raise Amount

It's important for you to know the most amount possible you can raise and make sure you don't go over. As this may cause legal problems in the future. The state of California has many laws that are designed to protect tenants though these laws can be different depending on your county guidelines. If you own properties in multiple counties it would be helpful to have information about all your local laws to ensure clarity when discussing raising rent to your tenants.


Competition

Competition will always have an input in dictating the amount you can ultimately charge for your rent. If the local competition is renting a 1,000 square foot single family home for $1,500 it will be difficult for you to be able to rent a similar home in the area for twice that much. 


If you are having a hard time filling up vacancies, or tenants are moving out after an increase in rent it's important to understand
how competition affects your ability to raise said rent. You should be aware of what your rental is competing against in terms of cost, amenities and relationship other tenants have with their landlords.


How long have they been a tenant?

This may seem unorthodox, but long term tenants who follow the rules set by the lease can be invaluable to your bottom line. Meaning in some cases it's better not to increase the rent. Long term tenants tend to be happy and loyal, by increasing their rent they might be pushed to move to another location. Replacing a happy tenant can be difficult and the amount of time required to prepare a home to put back on the market sometimes isn't worth losing a tenant who pays on time and causes little issues.


You can reward long term tenants with less frequent rent increases or more modest increases as a strategy.


There are many items to consider before increasing your tenant’s rent. If you need help communicating rent increase with them, if you’re looking for a high quality
full service property management company or if you require any further information on the services they provide call 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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