Raising the rent on a property is never easy.  All property managers worry about renter retention and the stress of having to attract new renters with a higher price point.  However, raising the rent also allows you to improve your facilities, balance your operational costs, and make more profit.  There are some pretty good signs that it is time to raise the rent.  If you keep these in mind when pricing your rentals, you should be able to retain your current renters and attract new ones.

Neighboring Properties Are Raising Their Rents

It is always a good strategy to watch the competition.  If neighboring properties have raised their rents, it’s probably a good time for you to raise yours as well.  Though this isn’t always a rule.  Sometimes neighboring properties will come under new ownership or overestimate their property values.  Other times they offer more amenities at their properties.  So you want to make sure they are comparable properties and that their rental spaces are full and they have good retention.  This can be hard information to find but you can learn through thorough market research and MLS affiliates.

You’ve Improved Your Amenities

If your property has undergone recent upgrades and renovations or you have expanded the amenities and services provided, you can look at raising the rent.  When raising the rent based on additional amenities, you need to weigh the operating cost of these amenities.  Some amenities like a business center or a picnic area required less operational costs than amenities like a pool or a doorman.  Also consider the attraction of your amenities, some amenities like ceiling fans do not have the same luxury value to residents as a hot tub.  So consider these factors if you are considering an amenities-based rent increase.

The Neighborhood Is Booming

The neighborhood is the best indicator if it is time to raise the rent.  Sometimes neighborhoods experience an unexpected boom.  This can be the product of new businesses moving into the area.  Employees of these businesses will want to live close to work and will want housing in the area.  Other times a neighborhood can become trendy.  This can be a product of everything from gentrification to a boom of local retail shops or even simply a young professional crowd liking the area.  In these cases it is smart to raise the rent because the local economy can support the increase.

Client’s Responses

The most often overlooked sign that it is time to consider a rent increase is from prospective clients.  When showing a property gage how they react.  If they say things like “this is a lot of space for this neighborhood” or “we should take it, I bet these apartments fill up fast,” anything that indicates the value is higher than expectation, it’s a great sign you can raise the rent.  

If you are ready to raise your rent or if you are still unsure if a rent increase is right for your property, you can always contact Occupancy Solutions.  Our expert staff can assess your property, help you look for ways you can improve the community, and get the most money for your rentals.