Strapped for cash? Here’s how to gradually increase the rent on your Middlesex home

by | Oct 19, 2022 | Blog, Liquidating Assets

All landlords share a similar fear about upsetting a loyal tenant by asking for a rent increase when it comes time to renew their lease. However, rising real estate costs may soon reduce your investment returns, giving you the need to boost your income.

Whether or not you should raise your Middlesex property’s monthly rent depends on a number of factors, including local market prices, vacancy rates, and whether or not your tenant is able to pay more. Prior to informing your tenant of a rent increase, it’s important to consider these things, especially if the tenant may find them difficult to accept.

Here are some steps on how to demand rent in your Middlesex property.

Check local rental laws

Knowing your local rental laws is a sensible move before you decide to increase the rent when renewing a lease. State and local laws on rent increases differ; some places prohibit rent increases, while other cities have rental ceilings that prevent landlords from raising rents above a specific percentage or cash amount.

Determine how much you can increase

The market value of similar apartments in the area can be used to determine how much to ask in a rent increase. Make a list of the rent values for available apartments in your area and use that number to calculate your new monthly cost.

Next, think about vacancy rates. Do you see a lot of vacant apartments nearby that are like yours? Do you have any difficulty finding new tenants for your other properties? Or is your rental in a location that is in constantly in high demand? You can decide if it’s worthwhile or not to increase the rent by knowing whether your tenant can easily find another place.

It’s also important to remember that just because comparable rentals in your neighborhood are renting for a certain amount, it doesn’t necessarily follow that you may raise the rent significantly to close the gap. While you can significantly raise the rent when you’re looking for new tenants, no existing tenant will agree to a significant rate increase.

A typical increase in rent would be between 3% and 5%, although this will depend on your circumstances, the rental laws in your area, and the current rent.

Make upgrades to the property

You might have a good reason to raise your rent to reflect improvements you made to your rental property. On the other hand, you definitely don’t have much of a case for a rent increase if you’ve disregarded requests from your tenants for repairs and maintenance.

By replacing some outdated appliances or making other improvements to the property, you can boost the incentive for them to stay. Similarly, it’s likely that your tenants will request certain improvements before agreeing to a lease renewal and rent increase.

Notify your tenants

Once you’ve determined the new rent amount, it’s time to inform your tenants. This needs to be done 45 to 60 days before the end of the lease.

The best case scenario for a landlord is to effectively increase the rent while maintaining a good relationship with their tenants, so you should have an idea of what you’re willing to compromise in order to keep your tenant happy with the increase. Such concessions can include repainting the apartment, replacing old appliances, providing free parking, or making other less expensive adjustments.

Once you’ve reached an agreement on the rent increase, make sure to provide your tenants a “rent increase notice” that is signed, dated, and kept for your own records. This is a good practice to do before renewing any lease.

If you’re really strapped for cash, you might want to sell your house fast in Middlesex.

Ready to sell your property? Quick n Easy Offers can give you cash fast!

“A rent increase won’t do it, so I want to sell my house fast in Middlesex, NJ!”

If this sounds like you, we buy houses in Middlesex!

Quick n Easy Offers is a no-nonsense house buying company that offers cash for houses in Middlesex, NJ. If you need to sell your house fast in Middlesex, NJ for cash, we’re local home buyers serious about buying your house. No repairs, no inspections, no agents, no fees, no commissions.

Our process does not involve getting pre-qualified by a mortgage bank in order to obtain a home loan or listing the property on the MLS or any other listing platform. The reason our team at Quick n Easy Offers is able to purchase properties very quickly is because we use our own money, which means the sale is more secure and we can close faster than a traditional buyer.

To find out more about our home buying program, please call us today: (732) 737-6623.

Michael Hernandez

Real Estate Professional, dedicated to helping homeowners and home-seekers meet their real estate goals.

Related Post

Ready to get Started? Sell with Quick n Easy Offers

Get An Offer Within 24 Hours!