Maybe your insurance premiums are going up, or you predict an increase in tax burdens. It could be that your maintenance partners are all raising their rates, or you anticipate major renovation costs this fall. Regardless of why you’re considering a rent increase for your Fayetteville renters, you are perfectly within your right to do so, and your reasoning requires no explanation.
Increasing your rent on vacant Fayetteville rental properties can be as easy as updating your lease agreement. However, increasing rates with existing renters can be a more difficult proposition. There are tips to ensure you develop a plan of action in negotiating a rent increase with current tenants for the best results. And today, we’ll share a few best practices to guide you through what to do next.
Know the Market Rates & the Law
Before you even consider incorporating a rent increase, you’ll want to follow through on your local market research first. Of course, there may be legal guidelines to which you should adhere. But market rates can also fluctuate by neighborhood and community. To avoid raising your monthly rent amounts too high, consider exploring other vacancies in your area and browsing the listings. Your Fayetteville rental property may command a higher rate due to its condition and amenities. But keeping your property ownership finger on the pulse of Fayetteville area rent standards can help prevent you from pricing yourself right out of an occupancy.
Provide Renters a Host of Options
The sales gurus suggest presenting a customer with more than one option to avoid a “yes” or “no” decision. Offering three potential “yes” choices can increase the chances of a sale. When you explore increasing your Fayetteville rental property rent amounts, it can help to adopt a similar strategy. Consider putting together a three-tiered increase solution. As one selection, the tenant can agree to a flat-rate increase. But the remaining two options might present lower increases and added requirements instead. For example, instead of agreeing to a $100 increase, maybe the tenant will agree to a $50 increase and will assume responsibility for yard maintenance moving forward. Or you can present an option to impose the increase in increments, over a period of months. Providing options will demonstrate your flexibility to be accommodating and can open the line of communication to negotiate rent payment terms that work for you and your Fayetteville tenants.
Provide Ample & Lawful Notice
This year has been challenging for everyone. So when it comes to finances and rent, you may be as equally desperate to increase your Fayetteville rental property charges as your tenants are to avoid them. Delivering such communications should be handled professionally and delicately, with particular attention to a timeline. You will want to be sure you’re first providing lawful notice via official and pre-agreed communication channels. It’s also imperative that you give your current Fayetteville renters time to transition. The more time you provide, the easier it may be for tenants to prepare their personal finances accordingly. It also allows a designated time for them to communicate to you whether or not they can afford the increase. Giving yourself enough time means improving your chances they’ll accept and, alternatively, giving yourself ample time to market an upcoming vacancy should they decline.
When negotiating your Fayetteville rent increases, it can be helpful to have a rental property management partner. Contact our property management office today to discover more ideas and best practices for negotiating a rent increase. Our professionals can assist you in carving out the ideal strategy for managing rent increases with precise knowledge of the Fayetteville market.
