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 June 6, 2025
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