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Is raising rent $100 too much?
I am still considered a rookie landlord, so i need advice bad. I own a two family house that i live in and i have a tenant that has been paying me the same rent for the entire time. I have not raised his rent in 5 years. He is a good tenant and pays on time, but with the increases in repairs, taxes, mortgage i am now faced with this decision. I want to raise his rent by $100. Is this too much at one time?? Is this legal? He is on an oral month to month tenancy, there was never a written lease produced at the time i purchased the home. BTW, he takes up my entire garage to run his moving business, and i still have not raised his rent. I plan to send him an OFFICIAL letter this month to raise his rent from $550 to $650 beginning 2/1/10. I welcome any ones feedback~mainly experienced landlords please, and thank you.
I want to thank all of you for your responses...it really helps! thanks Y!A friends!!!!!!!
4 Answers
- Classy GrannyLv 71 decade ago
As someone that has been a landlord for over 20 years I would not increase rent by a $100 all at once. That is a big increase. I'd go for something like $50 and in your letter state that rent increases by $50 on 2/1/10 and another $50 again on 2/10/11. If he's using the garage to run a business he'll accept the increases.
- CoolCatLv 71 decade ago
Sounds perfect.
Also sounds like hes been getting a screaming deal and should not complain about the increase. He will not likely be able to find such a good deal anywhere else.
Send hime the written notice asap to give him plenty of notice. You may also want to sign a lease too, even if its just 6 months or at least have a written agreement w/ tenant that he must give you 60 days notice before leaving.
This gives you plenty of time to find another tenant since you do not have a set time for lease end.
If he has not given you any security, you may want to consider that at this time too. You could always write in the letter that the security could be paid in installments or within 3 months for example.
If he's been a great paying, clean and neat tenant then just the $100 increase is probably enough.
- 1 decade ago
No, it’s just fine to ask for another $100. You are not currently under a lease with this person so the tenant has the option to look for cheaper housing if need be. I might present the rent increase to your tenant in person this will likely add a personal touch to it rather than a letter stating you want more money. I have been renting a house since 1994 and have had to raise the rent a couple times. Given they have been a good tenant just tell them in person and see how it goes, I think you will be happier with the results.
- Janice 10Lv 71 decade ago
You have not raised the tenants rent in 5 years and I would have your tenant sign a lease for both of you, and to know what is expected. $100.00 is not to much to raise the rent. Your tenant is using the garage too, if they were to try and find a garage to rent it would cost close to or $100.00 so they are getting a deal. Best Wishes and Happy Holidays.
Source(s): Real Estate Tycoon, Investor and Volunteer fro Habitat for Humanity.
