Blog Post

Raising Rent is All About Consistency

Dustin Edwards • January 31, 2023

Timing is Important When Raising Rent

Many tenants find rent increases frustrating, so many new landlords want to avoid confrontation. Even landlords with experience can find it hard to tell a tenant it’s time to raise their rent. This is a challenging and tactical concept an investment property owner must face. 


Although vacancies and tenant turnover can cost you money, failing to increase rent to offset the costs of maintaining the property can affect your bottom line. Consistency is critical when increasing rent prices. Below is a list of items you should be consistent with, which can make raising rent easier for you and your tenant.


You are a Business First

Although you may have a great relationship with your tenants, keep in mind that you are ultimately running a business. Knowing the financial state of your Long Beach rental properties can help you understand when it's time to adjust the rent. As time passes, the costs of being an investment property owner increases. As an example, maintenance and taxes may increase every year. You'll be taking an overall pay cut, even if by a small amount, if not offset by the incoming rent. If you avoid increasing the rent, it can make it difficult for you to remain in business, as there are caps on rental increases. This can make it difficult to recover financially from bad years.


Understand Laws

California has some of the most strict laws protecting tenants. These laws are constantly changing. Knowing the dos and Don’ts of raising rent is required to avoid unnecessary headaches. Owners often hire a lawyer or property management company with resources. 


Communication

Communicating verbally or through writing about upcoming changes can make it easier to convey that there will be an increase in the rent. Suppose you’re concerned about losing a tenant due to the rent increase. Attempt to inform them casually or informally. Let them know that you value them as tenants and wish them to continue living there. However, there will be an upcoming increase in the rent. This is not meant to be a time to negotiate with the tenant, though you should do your due diligence and research to remain fair and unbiased.


Follow up by sending a formal letter via certified mail. Certified mail will provide a confirmation date that the tenant has received notice. The owners must provide tenants with a 30-day notice for rent increases in any twelve months or 60 days if the owners increase their rent more than once per year. Keep in mind that mail travels slowly.


Rent Increase Clause in Lease

Having potential increases in writing mitigates the surprise of unexpected rent raises. When a tenant signs the lease, be sure they understand that you raise rent yearly. This way, they know from the beginning about the practice and are aware of the situation. Consistently raising rent by even small percentages can make it easier for tenants to accept the raises. This can keep your income strong while maintaining great tenants.


Increasing your tenant’s rent can be stressful. Many tenants take it as a personal attack, especially when they don't expect it. If you need help finding the right words to say to your tenant or need additional help to increase your tenant’s rent, consider calling us at (562) 888-0247, or feel free to fill out our
free rental analysis to see what your rental could yield today.

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By Dustin Edwards November 18, 2024
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Cold weather can come fast and strong so it's best to ensure your property is ready for this climate
By Dustin Edwards November 12, 2024
It's important to prepare your rental properties for the colder weather. Although we don’t need to prepare for snow and freezing temperatures, we do need to prepare for the cold and rain. By ensuring your rental is cozy inside and prepared for the fall season , you can not only reduce energy costs for your tenant but also maintain your rental property value. Today, we’ll go over three signs your property is ready for this upcoming cold weather.  Sign #1 Proper Weatherproofing During the colder seasons, it's much easier for a tenant to notice any cold spots in your rental. Well-insulated doors and windows can not only help maintain the warm temperature but also prevent it from lowering. It can also prevent cold spots and drafts, which can help with tenant satisfaction . Doors and windows should be properly sealed and insulated to prevent drafts and maintain proper temperatures. A visual inspection of the weatherstripping around doors and windows to ensure they’re intact is a great place to start. If damaged, consider replacing them, as trying to seal gaps can be tricky and rarely lasts. Other seals should also be checked, as well as any areas that need to be caulked in order to keep cold air out. Insulation during the summer helps keep the cool air in, and during the winter, insulation in the halls and attics helps retain desired heat. Hot air rises, and if there isn't adequate insulation in the ceiling, heat will continually be lost. Luckily, adding insulation to an attic is not uncommon and typically only requires a day or two for installation. Sign #2 Energy Efficiency Measures During the winter, it's not just the cold you need to keep in mind. As days are much shorter, there is less sunlight to keep the rental warm and more hours of darkness. For this reason, it's a good idea to keep energy efficiency in mind when preparing for the cold weather. Energy-efficient lighting or smart lighting helps reduce overall costs since your tenant will likely use electricity to keep warm. Ensure your outdoor lighting is rated for external use, as this can provide crucial illumination during longer nights. Draft guards on doors and windows help reduce the load on your rental’s HVAC system which can significantly improve its lifespan. This is also a great time to replace filters and clean the ductwork in your rental to improve energy efficiency. Additionally, consider installing an insulative film on older windows, which helps retain heat and keep rooms warmer without the need for extra heating. If your rental has a programmable thermostat, ensure it’s in working order, as this can help tenants manage an energy-efficient heating schedule more easily. Sign #3 Property Exterior Southern California is a great place to settle down, and while we don't need to worry about snowfall or deep freezes, ensuring the exterior of your rental property is ready for the cold weather is important. With our cold season mainly bringing with it rain, inspect your rental property’s rain gutter system . Remove debris from drains and check for leaks or signs of wear and tear. Walkways should be clear of debris and well-lit. This may require you to prune and trim trees and bushes that may leave behind leaves. When combined with rainfall, a single wet leaf can cause someone to slip and hurt themselves. Consider adding non-slip mats or tape to areas where people may have tripped in the past. Much like during the hotter weather, it's important for your rental to be ready for fall and winter. By keeping your property ready for any weather Southern California has to offer, you ensure your rental property and tenants will provide steady rental income every month. If you need help preparing your rental for the cold weather or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards November 4, 2024
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