Every rental property owner knows the importance of staying competitive with other rental communities in their area. As a Landlord you must get to know your market intimately. Study the economic factors, such as employment and new construction influencing your area. Always keep track of the available rental inventory, what your competition is charging and the amenities offered to tenants.
There is no magic percentage for raising rents, just what the market and your tenants will bear. It is best to raise rents slightly with more frequency, rather than large increases at once. Devise a formula that helps you keep rents high enough to pay for building upkeep, increased costs such as taxes and utilities, and build a reasonable amount for annual improvements that provide tangible, noticeable benefits for your tenants. Rent increases without making any improvements to the property or a tenant’s unit will most likely garner a negative reaction. Relatively small improvements to each unit such as paint or new carpets are always a welcome gesture. General building improvements not only make for happy tenants, they also increase the resale value of your property, i.e. if you add storage units in the parking lot and give each tenant a space, they will feel that they are getting something valuable for the additional rent they will be paying come January 1st.
Remember an additional $5,000/yr in gross rents can translate to your property value going up $50,000 when using a 10X gross multiplier to price the property.Please visit www.socalhomefinds.com or contact me @ (310) 383-4212 firstname.lastname@example.org if you are looking to find the Right Investment Property for the Right Price in LA County.