When to raise rent and what to tell tenants is the reason is this week’s question for veteran landlord, property manager and real estate investor Hank Rossi.

Dear Landlord Hank:

How do you decide how much you going to raise rent for tenants in 2019? We have some leases coming up for renewal and of course just got increases from our insurance company and taxes from the county and school district. How do you decide how much?

-Landlord Tim

Dear Landlord Tim,

When I have increases in fixed expenses I try, when possible, to pass along the entire cost to my tenants.

If your insurance went up $300 and your taxes went up $400, for example, that is $700 increase total.

If you divide that by 12 months it only comes out to $58.33 per month over an annual lease.

That, to me, is very reasonable and I think most folks could handle that with no problem.

I’d be open to discussion if a rent increase could be problematic for a tenant. I would rather not pursue an increase in rent if it is going to cost me a good tenant.

Vacancy costs and rehab costs will more than make up for the small amount of rent you aren’t receiving from not increasing a good tenant’s rent.

Sincerely,

Hank Rossi

Other recent Dear Landlord Hank posts you may have missed:

If A Good Tenant Loses A Job How Long Before You Evict Them?

How Do You Raise Rent For A Long-Time Tenant?

 How Do You Know When To Change Property Managers?

 Where Do You Draw The Line On Normal Wear And Tear?

Dear Landlord Hank: Do You Conduct Rental Inspections? How Often?

Dear Landlord Hank: How Do I Motivate My Tenants To Conserve Water?

Is An Old Drug Conviction A Big Deal?

Dear Landlord Hank: Should I Give A Tenant More Time To Pay?

Dear Landlord Hank: Tenant’s Sewer Line Clogged With Tree Roots

Do You Call A Prospective Tenant’s Employer For Verification?

Dear Landlord Hank: Service Dog Ruined Backyard In My Rental Now What?

Do You Ask Tenants Or Maintenance To Replace Light Bulbs?

Dear Landlord Hank: Why Are Tenants Rude When I Ask For Rent Payments?

Dear Landlord Hank: Do You Use Same Paint Color Inside All Your Rentals?

Dear Landlord Hank: How Do You Decide How Much To Raise Rent?

Landlord Hank at work on one of his properties.