In today’s environment, we’re seeing that the rental market is undergoing a bit of a contraction. Part of this is due to some of the trends in the overall rental market. It’s a good example of why it helps to have a finger on the pulse of the market. We do this every day as professional property managers. But, as an individual landlord, you may not be as in tune with how the market is behaving.
Rental Property Income and Raising Rents
When it comes to re-renting your property or renewing a lease, it’s important to know if the market has increased to determine how much rent should be. Factor that into the lease agreement. You want to keep a tenant long term, but you have to plan for increased maintenance expenses, property taxes, and insurance. So, if the market will bear an increase, you should do it when the time comes. Keep your tenant on a fixed term lease as well. You want to know your rental income will be predictable for the next 12 or 24 months.
Rental Property Income and Decreasing Rents
On the flip side, when the market decreases and you have a good tenant who is taking excellent care of the property, you might want to offer your renewal at a lower rate or throw in some incentives like maybe a carpet cleaning. We’ve also seen owners offer flat screen televisions or something to show the tenant that you’re happy they are in the property. When they renew their lease, you have that security for the next year or two. Despite what the market is doing, you have that guaranteed income stream.
Property Management Burlingame
We are always happy to answer questions about this, especially as they pertain to your property. The market depends on what kind of property you own, your location, and a number of other factors. Each property has a different price. There’s no answer that’s the same. We know there are a lot of things to consider when you’re approaching this topic with your tenants or your Burlingame property management team.