Posted on 01/12/2019 4:04:12 PM PST by SteveH
i own a sf bay area rental home and use a property manager.
the renters have been there for about ~20 years, but the rent has never been raised.
The CPI indicates that prices have increased 45% in that period.
The renters are Amish. No real problems, at least so far.
One online survey (note: not zillow which seems inaccurate at times) indicates that we could raise rent by about 30% if we wanted to be on par with local market rental rates.
what are counterarguments to raising rent? apparently there is no rent control in the area. avoid angering the renters?
A good renter is gold. Well worth not raising rent if they take care of the place.
Get a new manager!
It is pretty tough to raise the rent on a current tenant by that amount. Better to raise a little every year.
Tenant is going to be mad and angry and you will need to get a new tenant. Not going to avoid the drama...…………...
Rent needs to be raised .
Property taxes along are brutal .
How much is the vacant/search/qualify/discrimination suits gonna cost you?
A quality tenant, pays on time, no drama, takes good care of the property is worth what to you?
Compare the two.
Often, a long-term quality tenant is worth much more than the few shekels of an increase.
Exactly! Get a new manager and raise the damn’ rent. It’s a business, not a charity!!!
That is your job to raise the rent, unless you have a written contract with the property manager and a lease that states the rent goes up a certain percent each year, that is all on you.
Personally, I would inform my property manager to raise the rent 5 percent every year within the guidelines of the lease.
Unfortunately, you are not going to get back rent and raising up to market will definitely chase your renters away, and might expose you to some obscure rent gouging law that you don’t know about. You bare some of the responsibility here, however, for 20 years you were satisfied with whatever income this property produced you, or you would have raised the rent a lot sooner.
Only time he's had to raise my rent was when the condo association raised his dues.
He's not only a landlord, but a friend. He's active in the Marine Corps League, and keeps badgering me to join. I just don't want to mess with anything like that at this point.
Fire your property manager.
You own the property as an investment.
He is a lousy investment manager, underperforming a rising market.
Why would you keep him??
Either your property manager has an inappropriately friendly relationship with the tenant, or he knows something you don’t. Depending on the part of the Bay Area your rental is in, reliable tenants could be anywhere from plentiful to non-existent. A raise in rent is a raise in his management fee, unless the rental is empty or has non-paying tenants. Very few property managers are going to pass up more money.
If the manager does consider these people his friends, and does not want to raise rent on them due to that friendship, then he is no longer representing your interests, but theirs. If that is the case, fire him and get a new manager. A good long term tenant should be valued, so I would consider that when increasing rent...
Sounds like someone has been asleep at the wheel. The rentals didn’t go up this past year alone.
Oh, and that someone asleep at the wheel was you.
I am an owner.
I would raise 10% per year.
Let them know after the first rent increase that there will be others down the road, that expenses are too high not to.
Get a new property manager and try very hard to get an Amish manager. And discuss the need to raise rents during the hiring process. Make sure they are on board or keep looking for a new manager. I believe this will minimize conflict down the road.
Sell the house and leave California
There are Amish people in SF????
There are Amish people in SF????
Don’t remember seeing any of those cute little wagons when we were there.
I’m a home owner since 1993 so let me talk about some friends in San Diego who have been renting the same place for over 19 years. It was 500 a month when they moved in. Now it’s 1,950 a month for the 3 bd 1 ba 1 car garage house with a fenced yard in an okay neighborhood. Because my friends like the place and the neighborhood they have stayed and gone along with the rent increases all these years but they have had to take in sub-renters for two bedrooms to make ends meet.
If your rental is in a good neighborhood and the renters like the place and neighborhood; they will go along with your rent increases. They probably feel fortunate they haven’t gotten one in 20 years. That’s a lot of saving on their part and they should know that. If they can’t understand the costs have risen and they have to be passed along to them, the renter, then when they look for something else in the area they will realize how good they have had it if they don’t already.
Let the manager know if he or she doesn’t raise the rent as ordered; she can look for another job or lose you as a paying property owner depending on your arrangement.
Amish. That’s code for section 8. My bud does this on one of his buildings.
As a landlord how many deductions are you not taking advantage of?
If you have a golden renter why is there a need for property management? How long is the lease for?
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