The cost of living is regularly going up, and along with it, the cost of maintaining a property in Lakewood, Englewood, South Denver, Greenwood Village, Highlands Ranch and Aurora is also rising. Raising the rent at your rental property is one way to recoup costs and ensure that you have sufficient funds to maintain your property. However, doing so can be a big decision that risks isolating some otherwise-happy tenants. How can you make the right call?
Take a Look at Your Finances
First, remember that renting your properties should be profitable for you. Take a look at your property taxes, utility costs, HOA fees, insurance premiums, property management fees, maintenance fees and cost-of-living increases. If all of these are increasing and the rental price has remained stagnant for years, there’s a good chance that you are not making as much profit as you could be through raising the rent at your rental property.
Check the Rules
There can be restrictions placed on certain areas or types of properties that govern how much you can raise the rent annually or between tenants without drastic property improvements. Check neighborhood rental rates with help from All County Denver South Property Management to determine if you are below, at, or above market rate. Make sure that you never increase rent by more than 3-5% in a single year, or you risk losing great tenants who have been loyal to you in the past.
Think About the Property
Finally, you should think critically about the state of the property and the tenant living in it. If the property is in great condition, has an excellent location and receives regular updates to the amenities, there is no reason why raising the rent should raise any hackles. However, if your rental property is in disrepair, if you have had issues staying on top of maintenance in the past or if it is in an undesirable area with low-rent comparable properties, keeping rent the same until improvements are made might be more prudent. We can guide you through assessing whether or not a rent increase is right for you.
All County Denver South Property Management Can Help Your Rental Property
All County Denver South Property Management is here to help property owners get the best return on their investment through knowledgeable and trustworthy property management services. From managing tenant relationships to lease enforcement, we look forward to working with you to see how your rental property investment can be a long-term, stress-free asset. We work with landlords throughout Lakewood, Englewood, South Denver, Greenwood Village, Highlands Ranch, Ken Caryl and Aurora. For a complimentary quote, call us today at (720) 664-4550.