The whole reason why Central Oregon landlords own rental properties is to collect rent. It sounds obvious, but if you have any rental properties, you know how deceptively difficult dealing with rent can be.
You have to determine how much your property is worth so you can determine an accurate rent amount. You also have to consider how much you should charge in order to make a profit. Add to that the fact that those numbers are always changing, which means increasing rent, and you’ve got a real money mess on your hands!
In an attempt to keep some of your best tenants, you may decide against a rent increase, but this is actually a bad idea.
No rental increase now means a larger increase later
Of course your tenants don’t want to pay more to live in their apartment, and the fear is that by raising your rent, they’ll find a new place to live. However, by skipping a rental increase, you might be able to keep them around temporarily, but you’ll end up chasing them off in the long run.
A small rent increase each year is much better than a large increase every few years. Most tenants are able to find room in their budget for a few extra dollars, but if they see a large increase on their next lease, it may scare them off. Not to mention, small increases allow you to continue making the money you need to stay in business each year.
Having trouble keeping up with all the finances and rent payments on your rental property? We can help! Contact us today to learn how we can help Central Oregon landlords manage their rental properties.