Property Management

Good tenants aren’t easy to find. Finding good tenants requires effort, knowledge, experience and not to mention, a lot of time. So when you have one, you want to do all you can to hang onto them. But what should you do when the local market requires you to raise the rent? Maybe, the cost of living has gone up. Or, the property requires a large amount of upkeep to maintain it. Or perhaps, the property and income taxes have increased. When any of these happen, should you go ahead and raise the rent and risk losing a good tenant? Or,  should you keep the tenant and take home a lower profit margin? This is a question that many landlords often find asking themselves, especially when the time comes to renew a lease. Needless to say, rent increase is a risky prospect for landlords. Opting not to raise it, on one hand, can mean leaving money on the table. Raising rent, on the other hand, can leave your tenants scurrying for a new place to call home. So in this article, we examine 3 questions that landlords should ask themselves when determining whether or not to increase the rent.

Investing in real estate can generate passive income, significant tax benefits and build equity from price appreciation over the years. However, while this may sound exciting, the reality of being a landlord is it can often be very stressful. For example, you may encounter difficult tenants. From the needy tenant who calls for everything, to the tenant who always pays rent late. As a landlord, you also have the responsibility of making sure your property is well-maintained. Your renters may call you for every leaky tap and every missing shingle. Admittedly, that’s a lot for one person to handle! More so, if you are a new landlord.