In the U.S., there is actually a large shortage of rental properties. More American citizens are choosing to rent because they just do not feel they are in the right position to purchase a home. Rental rates are lower than they have been in years because property owners just do not feel comfortable raising their rents in such turbulent economic conditions. They want to ensure they are getting the most they can from their rental properties, but they are treading carefully because they do not want their tenants to be in dire straits with rental rates they cannot afford. A good property management company will be invaluable in this situation because they will know local markets well enough to know if the local area can sustain a rental increase or not.
Increasing Rents with Economic Improvements
According to the government, the recession is over. However, most average citizens are still feeling the pinch when their money is concerned. This has put real estate asset management Fort Collins companies in limbo, because they are wondering if now is the right time to raise rents or not. There is no clear answer to this dilemma. However, there are factors that can help property owners and managers decide whether to raise rents or not. Will the tenants be able to pay the increased rates? Will you lose tenants in the process? Do you believe the government is telling the truth that the recession is over? These are questions that property owners should heavily consider. They do not want to take the chance of alienating the good tenants they already have.
Making a Determination
Raising rent is an awkward situation. Some tenants may be well-off enough to pay the increased rates, while others may simply not be able to afford it. If you have decided without a doubt to increase your rental rates, then you should tell your tenants way before the increases will take effect. Tell them the exact implementation procedures, and address their concerns. You should also place the announcement on your website and send letters to each of your tenants to ensure they have received the notifications. As long as they continue to receive great services for the money they pay, most of them will not mind a small increase. Do not go overboard by increasing too much too fast. A competent property manager should be able to give good advice on how much the rise should be.
