Have you invested in rental properties in the Monterey County area but you haven’t raised the rent yet on your tenants?
There’s no doubt that rent increases are a contentious issue, especially in California in 2018 with the efforts to enact rent control statewide. Thankfully, the efforts to enact rent control statewide have failed but, that shouldn’t stop you from raising the rent on your tenants over time especially if you follow these tips.
Step 1 – Access The Market
Just because the rent for your Monterey County rental property may be less than what other rentals are leasing for that doesn’t mean you should raise the rent on your tenants. This point is especially true if your lease specifically states that you cannot raise the rent on your tenants until their lease expires.
For best results with rent increases, do a comparable analysis of other properties in the area to determine how much you should raise your tenants rent by then start talking with them now so they will be prepared for a rent increase at the time on their next lease renewal.
Step 2 – Know The Local Laws
Regardless if your rental is located in Monterey, or elsewhere in California, you must know your local laws and make sure that you are following what local rent control ordinances (if any) just to make sure that you don’t violate your tenants rights and potentially end up in court.
Step 3 – Determine If The Rent Increase Is Worth It
Last of all, but most important, you should determine if raising the rent on your tenant is really worth it. Why? Your tenant may decide to move and your property could sit vacant for 30 days or longer so, if you value your tenants consistent payments every month it may be in your best interests to hold off on raising the rent at least for now.
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Need Monterey County property management? Contact 36 North Property Management by calling us at (831) 484-4604 or click here to connect with us online.