It’s been a pretty rocky couple of years for everyone. And as a Forest Park rental property owner, you may have been feeling the hardships more acutely. Moratoriums on rent increases, non-paying tenants, and job loss have all affected the industry as a whole.
In reviewing your portfolio and year-end analytics, you might decide it’s officially time to think about raising rent. However, before you do, add these suggestions to your rent increase consideration process. You’ll want to make sure you’ve evaluated everything about your decision to avoid making an inadvertent mistake with your ROI.
1. Know the Market
Before you raise or reduce, for that matter, any rent payments, you should always take a look at the current market. Dive into the analytics for Forest Park first, including unemployment rates, the housing market, and growing amenities in the area. Look at the average rent in your rental property’s neighborhood, if applicable. Check vacancy listings online if you have to get creative. Cost of living matters, too. And any changes you plan to make to your rent benchmarks should always fall in line with what’s happening in the Forest Park market.
2. Know Your People
It’s usually not a good idea to drop a raising rent notice on your tenants without taking into consideration the existing relationship you have with them first. Of course, this is a business decision. However, it’s important to weigh and balance the value of a long-term, reliable tenant at a lower rent vs. a riskier new tenant at a higher rent point.
You might also decide to raise rent incrementally and, over time, to be less of a burden on your renters. But it’s the flexibility that counts. Be mindful to follow your communication timeline with existing tenants, allowing them enough time to reach out if they’re concerned. You can always cater a rent raising plan based on individual scenarios for those you consider reliable and long-term renters.
3. Know Your Bottom Line
There are rent calculators out there that serve as great tools when you consider raising rent. And there are even more expense contributors, like rising property taxes, increased utility costs, and maintenance price hikes. But before you send out those raising rent notices, spend some quality time with your bookkeeping. You might find trends that point to more significant ROI than you previously thought. In addition, there might be other revenue opportunities worth exploring before raising rent.
4. Know Your Available Resources
You might be feeling a little added anxiety about raising rent, especially if it’s your first time doing so. Similarly, if you’ve lost renters in the past because of higher rent, you might be hesitant to do it again, even if it desperately needs to be done.
Before taking the next step with your Forest Park rental property, remember you don’t have to go it alone. There are resources available to help, especially in considering these other listed steps in the process. And one of the best ways to successfully evaluate your situation and enact rent increases is with the help of an expert rental property management partner.
If you think it’s time to raise the rent for your Forest Park rental, consider these suggestions to evaluate all of your options. And if you need a partner to help calculate, communicate, and follow through on your rent increase notices, let us help! Our team of professionals knows all the tips and best practices associated with raising rent in a way that doesn’t scare off existing tenants. So call today and learn how PMI South Atlanta can take the sting out of the process and help you grow your bottom-line ROI.
