The Proper Way to Increase Rent on Your Modesto Rental Property
When you have a great tenant in place, increasing rents in Modesto can seem tricky. You don’t want your tenant to leave, but the cost of maintaining a rental property always increases, so raising the rent is often unavoidable. Follow the right procedure and make sure you understand the rental laws that apply in your area.
Revisit Your Lease Agreement
Look at your signed contract or the lease agreement that was executed when your tenant moved into the property. The rental amount indicated in that contract is set until the end of the lease term. You cannot increase the rent during that period. Any rental increase would have to wait until the lease ends.
Research Comparable Rental Rates
You can’t raise the rent unless the market will support the increase. Look at what comparable properties are renting for in your area so you know if you have the justification to increase what your tenants are currently paying. If you increase the rent so much that it’s higher than the competition, your tenants will find somewhere else to live. Be realistic when you’re choosing a new rent amount, and talk to someone who does property management in Modesto to get an accurate picture of what the market rents are.
Provide Written Notice
You need to provide your tenants with written notice of a rental increase. Send your notice between 30 and 60 days before the effective date of the increase, depending on what your lease and the local laws require. In California, the amount of notice you provide depends on how much the rent is going up. If there are any rent control laws in place where your property is located, you may not be able to raise rent, or there may be restrictions on how much of an increase you can implement. If you’re unsure, talk to a property management company or an attorney experienced in landlord tenant law.
Consider Negotiating Increases
When you have a quality tenant who pays reliably, takes care of the home, and follows the lease term, you don’t want to jeopardize the tenancy with an unfair rent increase. If your tenant objects to what you’re asking, consider negotiating. Be flexible with the lease terms and the amount of the increase. It’s going to cost you more money to lose an outstanding tenant than to give up a few extra dollars in rent every month.
If you need help determining when or how to increase rent, or you have any questions about Modesto property management, please contact us at Valley Oak Property Management. We’d be happy to help you.