From time to time, it is necessary to raise the rent for your Long Beach rental. However, approaching the subject with your tenants can be a touchy and complex process. Nevertheless, there are various ways to both successfully raise rent and keep your tenants content.
California Tenant Protection Act
Before we proceed, it is important to note that, per the recently passed California Tenant Protection Act, landlords cannot increase their rent above 5% plus inflation or 10% of the lowest gross rental rate charged in the previous twelve-month period. Additionally, Long Beach landlords can only raise rent once a year. These requirements are crucial to consider when planning to raise rent.
Address Improvements
Chances are that you have probably updated your rental since your tenants initially moved in. These improvements can act as leverage for implementing a rental increase. When sitting down with your tenants, you can remind them that the new smart devices or energy efficient appliances have improved their living experience. Yet, these additions came at a price. As such, you require a higher rent to offset these installation costs and fund future renovations.
If your tenants truly appreciate you and the enhancements you have made, they will likely be open to a rental increase.
Rental Analysis
Completing our online Rental Analysis will show you whether you are earning a sufficient rate for your Long Beach rental. If our Rental Analysis reveals that your rent does not match your current property value, you can show it to your tenants. This will help them understand that the increase is related to market conditions. As such, they will likely be more inclined to pay a little extra.
Market Rent
Showing your tenants that a rental increase would be lower than market rent may put the situation into perspective. Not only will it make them appreciate that you are charging them a lower rate, but it will also make them hesitant to seek a different rental on the market.
The positive of maintaining a lower rate than market rent is it allows you to keep tenants whom you trust. You may not make as much money as similar locations in your area, but you will have steady tenants who respect and take good care of your property.
Rent History
Sometimes tenants need a reminder that they have been paying a steady rate for an extended period. At another property, they may have already faced one or multiple rental increases.
Recognizing their pleasant current situation may encourage them to willingly accept your rental increase, especially if they know that you will raise rent relatively infrequently.
Raising rent can be stressful for both tenants and their landlords. Finding a property management company that you feel comfortable with can make the experience as painless as possible. As previously mentioned, feel free to check out our online
Rental Analysis or call us today at (562) 888-0247.
