Whether or not it’s a good time to raise rents may depend on who you’re asking.
From the tenant’s perspective, I’m sure it’s never a good time. But in my neck of the woods, things are starting to change.
For example, three or four years ago, a tenant in my area could negotiate almost anything they wanted. The market was so slow and depressed that negotiating a rent-to–own was even easier. In fact, if you were a tenant with Section 8, it was like having a gold card because vacancies were up and rents were down.
Slowly but surely, the economy, as well as the real estate market, are starting to pick up. In the most recent years, since financing was difficult, not much construction was being done. As a result, there are now a limited number of units available for the influx of potential tenants. This could, in part, be due to the mortgage meltdown, as well as population growth over the past few years.
Now more than ever, it may be the time to think about raising rents.
Things to Consider:
If you’re a landlord, when’s the best time for you to raise rents? For me, from a time of year perspective, it’s right about now. January or February are the best months because in Philadelphia it’s cold, kids are in school, the holidays just ended, and many folks are tight on cash. So it may be difficult for them to come up with the money to move. Granted, this still depends on when someone’s lease is up.
In nicer areas, it’s easier to demand one-year leases with one-year renewals, but that’s much tougher in lower income …read more