How To Increase Value
I recently became a landlord on my first REI. How does one go about making the value of a property go up without spending too much. I mean only doing little touch up and handy things. (Adding trees to a yard, a few boulders and mini-creek on the front yard, ect...
Maybe adding a stepping stone-type walk walk to th front door is better than a standard sidewalk?
If you have given notice of a rent raise, that should be the end of it. You do not have to give reason (unless you are in a rent control area that requires it). If they do not comply you give them a pay or quit notice.
Thanks for responding to my post.
No rent control here.
I chose a price that is comparable to other apartments in the area.
Still I hate to lose my original tenant.
You indicated that you told the tenant that your rent raise was comtetitive. If this is so, the tenant will likely not move.
I never give reason for a rent raise. The reason will not be believed and the tenant will feel that you are trying to deceive. Just a letter indicating the new rent, the date the new rent starts and a sentence indicating that all other terms of the rental agreement will remain the same.
More comparable than competitive.
According to the spouse there are places with nicer appliances, places with an additional bedroom, and places with a pool at this price.
Someone mentioned I could lower the new rent. I am currently considering that option.
I am still open to any suggestions and advice from this forum. I really appreciate your responses!
[ Edited by kmiduplex on Date 06/28/2005 ]
We do not know the rental situation in your market. Perhaps you need to know more as well. You might take a look and see what is out there at various prices to determine if your rent is reasonable. Another issue is how hard it is to find tenants. If you are in a tough rental market then you may want to negotiate. Maybe you can get a new appliance in exchange for them signing a one year lease at your rent level. Alternatively, you can raise the rent half the amount for six months and then raise it to your desired level.
Your rental market conditions should dictate what you do. So far, I have never lowered rent for an existing tenant although I have lowered the rent after someone moves in a slow market.
A property manager told me that with their lease renewal form they also send a sheet called "Cost of Moving". It adds up all the cost of moving to another location, including fees that the tenant might forget about. Then it compares the total cost of moving to the rent increase to show that is more expensive to move.