Always Review Your Rent Yearly
by Elaine Bauers
As a real estate counselor dishing out free landlord help, I will sometimes chance across landlords who have been charging the same rent to the same tenants for many years straight. While these extreme cases aren't common, they serve as a glaring reminder for landlords to review their rents regularly.
Before you enter into a long term lease, make sure your rental agreement has a clause that allows you to review and increase the rent every 6 to 12 months. Otherwise you may be stuck with the same rent until your lease expires.
Another advantage of monitoring your rent regularly and raising it bit by bit is that it's generally easier for your existing tenants to stomach.
Imagine your tenant's reaction if you suddenly decide to double the rent when he has been paying the same rent for 5 years. We can be sure that he is not going to be very happy about it.
This is crucial if you have renters that you want to keep. In some cases, I will recommend smaller rent increases if you are blessed with excellent tenants who are already saving you money and time by giving you a trouble-free tenancy.
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