#you think if they cant enforce that law theyll do any better with any other

[awkwardlyaaron]

For the amount of fireworks your not supposed to have in oregon I am hearing a LOT of fireworks

And they think they could deal with stricter gun laws?

You can't even stop people from blowing up pretty pollution bombs every year

[therealestatesparkblog]

6 Tips for Raising the Rent Painlessly (Without Losing a Single Tenant!)

Like most pieces of the property management puzzle, raising the rent is part art, part science. Theres a human element to itthats where the art comes into play. Fortunately, even that can be systematized. Far too many landlords hesitate and fear raising the rent. But its a part of the business, as raising prices is a part of any business. Inflation waters down the value of your rents each year, all while expenses ranging from taxes to insurance to repairs continue to rise and cost landlords more money. Here are six (and a half) tricks to avoid falling behind other rents in the neighborhoodand earn your best possible returns on your rentals. 6 Tips for Raising the Rent Painlessly (Without Losing a Single Tenant!)1. Raise the rent incrementally every year. If theres no other piece of advice you follow in this article, follow this one. Where so many landlords run afoul of rent hikes is that they wait. They let the rent fall far behind market level, and then try to raise the rent to normal market pricing all at once. But by that point, its such a large leap that it jars the renters budget, and they end up either leaving or resenting the landlord thereafter. Instead, raise the rent by 2-4% every single year like clockwork. It will keep the rent competitive at market levels, and its a manageable increase for your renters. Perhaps most important of all, it sets expectations among your renters. Theyll come to accept annual rent hikes as a fact of life, like paying taxes or politician sex scandals. Bonus half tip: Schedule your lease terms to end in April or May, regardless of when the renters first move in. When the day finally comes when your renters non-renew and move out, it will be much easier to find replacement renters in late spring/early summer than other times of year! 2. Never raise the rent by more than 8%. Raising the rent by 2-4% wont scare off your renters. At 5-7%, they may start considering whether to move. Above an 8% rent hike, many tenants will move on principle, if not because youve busted their budget. Again, dont put yourself in a position where youre $200 below market rents! Its not fair to you, and its not fair to your renters when you raise the rent by so much at once. Raise the rent incrementally every year to avoid this position. Related: The Ultimate Guide on Raising Rent 3. Consider offering another option. If you do raise the rent significantly, consider offering your renters an alternative to avoid the hefty hike: locking in a longer lease. Imagine the following scenario: The rent is $1,500, and youre raising it to $1,590. Your tenants arent happy. But you offer a way out, youll lock in the rent at $1,550 for them if they sign a two- (or three!) year lease renewal. Why would you make such a sacrifice? Because turnovers are where landlords lose the most money, and the most time in labor and headaches. The longer you can keep each tenant, the lower your turnover rate, and the higher your average returns. 4. Remember that better relations with your renters = higher renewal rates. Maintaining warm relationships with your renters is easier than you think. First, follow the best practices we outlined in this article aboutboosting your renter retention rate. Heres a quick and easy one: Whenever you call your renters about anything, spend 60 seconds warming them up first by asking about their personal lives. Keep a brief file on each tenanttheir childrens names and ages, their interests, their jobs, and what was going on in their lives the last time you talked to them. These files take only 30 seconds to keep updated each time you speak with your renters. It takes attention, not hard work. Example: Hi Betty, how are you doing? The last time we talked, little Bobbie was in the playoffs in his little league. Howd he and the team end up doing? or I know youd been worried about that merger at work. Howd that go? You get the idea. Its amazing how big of an impression these small gestures make on your renters. They shift the context from an adversarial money-grubbing landlord relationship to a collaborative human relationship. When you deliver the bad news that the rent is going up, theyll take it much better knowing it comes from someone who bothers to ask about their lives and their children, rather than a faceless, soul-less check-casher. 5. Implement dual communication: phone and written notice. By law, you must send written notice of rent increases. It must also be delivered within a certain timetable, usually 30, 60, or 90 days before the lease expires. But that shouldnt be the only form of notice. No one likes receiving bad news by letter; its impersonal and bureaucratic. Related: Why Landlords Cant Afford Not to Raise the Rent Call your renters to deliver the news the same day you mail the written notice. Be friendly, professional, and polite but firm. After investing a minute or two in the small talk we discussed earlier, present the news like this: Betty, I wanted to reach out and give you the courtesy of a phone call before sending off the renewal form. This year, the rent is going up by $40. Youve obviously been a great tenant, and wed love to have you stay on. You should be receiving the renewal form over the next few days, and well email you an electronic version as well since thats easier for most people to check off, e-sign, and reply back with. If they push back against the rent hike, just respond with, I understand, Betty. But rents go up alongside our expenses; its just a part of life. Wed love for you stick around, and we may be willing to negotiate a lower rent increase if youre willing to sign a longer-term lease. But if you decide to move on, we understand, and well work together for a smooth move-out process. See? Nothing to be afraid of. 6. Poll about property upgradesand sometimes make them. Want your tenants to keep renewing year after year? Another way to build trust and human connectionand to improve the value of your propertyis to ask them what upgrades theyd like to see. Then, implement them sometimes (but not always). Once or twice a year, when you talk to your renters, tell them, Hey, Betty. I wanted to check in and see what kind of changes youd love to see around the property. I cant promise anything, but we value you as a renter and want to do what we can to keep you with us for the long haul. The ideas and suggestions you get will run the gamut, of course. Some will be outlandish, while others will be great ideas. Look for ideas that are affordable to implement but that will improve the value and marketability of the property long-term. In other words, look for improvements that will justify higher rents for future tenancies, not just help you keep this one renter happy. For example, many smart home upgrades are inexpensive to implement, but fun and exciting for tenants, and in some markets, they justify significantly higher rents. No one likes hearing that their bills are going up, but renters wont think twice about it if they can see tangible improvements around the propertyespecially improvements based on their own ideas! Be a Friendly-But-Firm Professional In all your communications with tenants, be professional, friendly, and firm. Never argue. You do not negotiate with terrorists. Build a human relationship with your tenants. Set expectations by raising the rent every year. Its not just taxes and death that are inevitable, but also that your rents will rise every year! But not by much. Youre not looking to bust your renters budget. Youre simply keeping pace with market rents in your neighborhood (and your ever-rising expenses). If raising the rents is uncomfortable for you at first, write out a script similar to the examples outlined above. You are not your tenants adversary. You are a service provider, they are a customer, and you want to work with them in a friendly and professional way, while still enforcing the rules and defending your boundaries. Were republishing this article to help out our newer readers. What have your experiences been in raising rents? Share your stories! https://www.biggerpockets.com/renewsblog/raise-rent-without-losing-tenants