Whether it’s the economy, property taxes, or HOA dues, sometimes as a landlord you have no choice but to increase your rent to stay profitable.
While no tenant will be happy about paying more, you can make the process fair and with fewer complaints by following these tips.
Calculate How Much You’ll Increase the Rent
Many landlords use the 1% rule to determine their rent. This suggests that landlords charge 1% of the home’s value for rent. So if your home is valued at $300,000 the rent would be $3,000 a month. You can also look at the rental value of other homes in your neighborhood.
Keep in mind, you’ll also want to budget for maintenance, property management expenses, and insurance premiums to make sure you remain profitable.
Decide When to Raise the Rent
Typically, a landlord is required to give their tenants at least 30 days’ written notice before their lease is up for renewal or expires. Check with your state laws and lease agreement to determine how much of a notice you should give your tenant.
In Washington, landlords can increase the rent as much as they want as long as they comply with the appropriate notice period and haven’t issued the notice to discriminate or retaliate against the tenant. (RCW 35.21.830) However, certain circumstances still apply as the state transitions from COVID-19 impacts.
Notify Your Tenant Of the Rent Increase
Create a written form to notify your tenant of the rent increase. Make sure you cover all of the necessary information including when the rent increase goes into effect. You may also want to use this time as a reminder of your payment policies and late fees.
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These are just some basic ways to increase your rent. For more information on being a landlord visit our blog and contact us today for premier property management services. We serve all of Clark County WA!