Raising rent can at times be a very crucial and time consuming decision. Your tenants are never ready for a rent raise especially when you lack management skills. A landlord must have good management skills as he deals with people all the time. Tenants can be very difficult to handle so make sure you put forward your best strategy when dealing with them.
Obviously you want your real estate business to flourish and raising rent is just part of the process. Remember, never to ask your tenants if they mind a raise in rent. It’s your property, take hold of it. Tell them that you are raising the rent. You might face a negative reaction from your tenants because no one likes to pay more.
Meet your tenants personally to discuss the possible rent raise. This way it will be easier for you to judge your tenant’s expressions and reactions. They will also hesitate in saying no face-to-face. Rent raise is a very important thing and every important thing must be discussed personally to avoid any misunderstandings and problems.
It will be an advantage to you if your house rent is less than the market rates. This way you can easily raise rent and your tenants might not have so much trouble accepting it.
The use of words and your sales power makes a huge difference while you are talking to your tenant for a rent raise. Play with your words and don’t leave any space for discussions and negotiations. When you get into long discussions, that’s when your tenant takes control of the situation. Make sure your negotiation powers are strong and you convince your tenants.
Some tenants might not accept the rent raise at all. They might want to move out and get a new place. The best thing to do is ask for a raise in the summer season or at the start of it. Why? Because if your current tenants leave, you’ll have to lease your house as soon as possible or you will lose the income you were generating through it.
Never make an unplanned decision. Poor planning can lead to failure. If your tenant does not seem too happy with your decision, convince him by telling him how taxes, costs, and expenses have made it necessary for you to raise the rent. Your best bet is to play with words and negotiate smartly with your tenants for a successful rent raise.
