Rising rent is a necessary part of the investment property business, but it doesn’t have to mean losing great tenants.
At Gregory Property Management, we believe that respectful and transparent communication is key. We focus on showing your residents our value, not just increasing their monthly cost.
1. Give plenty of notice and explain the “why”
We notify tenants well in advance of any rent change, giving them plenty of time to plan and showing them that their time and budget are respected. We are also transparent about the reasons for the increase, such as rising property taxes or market shifts, which builds trust and goodwill. When applicable, we highlight improvements that add value, like new appliances or property upgrades, which can be done during a lease renewal walk-through.
We notify tenants well in advance of any rent change, giving them plenty of time to plan and showing them that their time and budget are respected. We are also transparent about the reasons for the increase, such as rising property taxes or market shifts, which builds trust and goodwill. When applicable, we highlight improvements that add value, like new appliances or property upgrades, which can be done during a lease renewal walk-through.
2. Use data to align with the market
Before making a final decision, we conduct thorough market research to ensure any rent increase is fair and aligns with current rental prices in the area. Overcharging is a surefire way to drive away quality tenants, and our data-driven approach helps us maintain competitive rates in the Bothell, Kirkland, Redmond, and Bellevue markets.
Before making a final decision, we conduct thorough market research to ensure any rent increase is fair and aligns with current rental prices in the area. Overcharging is a surefire way to drive away quality tenants, and our data-driven approach helps us maintain competitive rates in the Bothell, Kirkland, Redmond, and Bellevue markets.
3. Implement gradual increases
Rather than shocking tenants with a large increase, we prefer smaller, more gradual annual adjustments. This makes it easier for tenants to budget and helps maintain a positive, long-term relationship.
Rather than shocking tenants with a large increase, we prefer smaller, more gradual annual adjustments. This makes it easier for tenants to budget and helps maintain a positive, long-term relationship.
4. Highlight excellent service and offer flexibility
Good tenants are more likely to stay when they feel well cared for. We emphasize the responsive maintenance and reliable service our team provides. For tenants with changing needs, we may consider flexible lease options, such as a month-to-month agreement at a slightly higher rate.
Good tenants are more likely to stay when they feel well cared for. We emphasize the responsive maintenance and reliable service our team provides. For tenants with changing needs, we may consider flexible lease options, such as a month-to-month agreement at a slightly higher rate.
5. Reward long-term tenants
We recognize that your longest-standing tenants are your most valuable. We reward their loyalty with smaller-than-average rent increases or a rent freeze to show our appreciation for their contribution to the property.
We recognize that your longest-standing tenants are your most valuable. We reward their loyalty with smaller-than-average rent increases or a rent freeze to show our appreciation for their contribution to the property.
6. Maintain and enhance the property
Ongoing maintenance and property enhancements show tenants that their higher rent is being reinvested into their home. Keeping the property in top shape enhances its value and reinforces a tenant’s satisfaction.
Ongoing maintenance and property enhancements show tenants that their higher rent is being reinvested into their home. Keeping the property in top shape enhances its value and reinforces a tenant’s satisfaction.
A long term tenant will greatly increase the overall profitability of your investment property.