One of the easiest ways to become more profitable with your rental properties is to learn how to raise rent on a tenant. This post will share my latest tenant search experience. In many cases, landlords are hesitant on raising the rents during the renewal time for good tenants because they are afraid this good tenant will leave and look for another rental … Where so many landlords run afoul of rent hikes is that they wait. The rent increase usually used in a month-to-month lease or if the standard lease is about to end. A good tenant-landlord relationship goes both ways. You can compose a friendly rent increase letter if: You want to inform your tenant of an increase in their rent amount per month. A rent increase letter is exactly what it sounds like: a letter that tells renters of an increase in rent. 6 Tips for Raising Rent Painlessly (Without Losing a Single Tenant!) Moving is expensive and time consuming. If there’s no other piece of advice you follow in this article, follow this one. Landlords must provide a 60-day notice of rent increase to ensure that the tenant knows of this change and can start preparing for it. This formal notification of an increase in rent for tenants is usually given 30-60 days before the current lease ends. Raise the rent incrementally every year. One of the keys to being a successful landlord is finding good tenants. Below are some good tips on how to increase rent the right way: Increase rent incrementally - If you provide good service, especially with maintenance processes, and take care of your Tenants, it’s highly unlikely that they will leave over a $25-$50 rent increase. But, is it possible to raise the rent on a good tenant without losing them? At some point in your landlord journey, you may come across a situation where you have to decide between better tenants or higher rent. So when you have one, it’s normal that you’d do everything in your power to keep them. 1. 2. State rental laws require notice before an increase—usually around 30 to 60 days. If the tenant is a good tenant, and the landlord would like them to stay in the house, they should say so. Being a Good Tenant. READ MORE: How to Raise Your Tenants’ Rent—Plus, Free Sample Rent Increase Notices. Of course, in an ideal situation, you would love to have both. Good tenants are hard to come by. Finding a good tenant isn’t always easy and if you’re a seasoned landlord you may have already encountered a bad tenant. So if your current tenant pays rent on time, maintains the property, and is easy to deal with keeping them in place is probably a no-brainer. A raise in rent could result in the tenant leaving the property and the landlord needing to fill the vacancy. Do you Currently have a Good Tenant? What is a rent increase letter? To start, research the fair market rent of comparable homes that are vacant in the area, keeping in mind that a vacancy is different from an in-place tenant. This is a question that many landlords ask themselves. Raising the rent requires a blend of good business skills, marketing research, public relations with tenants and legal requirements, making it a key part of anyone’s real estate investment business. There’s no harm in the landlord telling the tenant that he or she hopes they will stay. This information on raising a good tenants rent is really helpful to a lot of landlords that feel really uncomfortable about hurting a relationship with their tenant but at the same time leaving money on the table month after month. One of the most challenging decisions a landlord must face is whether to raise the rent on a good tenant. Before doing this, it’s imperative that you send a rent increase letter. This is to provide you with sufficient time to find new housing if you are not able to afford the new monthly rent. In good rental times, every landlord must ask themselves the following question: Should I raise the rent on a good tenant? I can see how you can make the tenant see your point of view in a nice and reasonable way.