Is there a statutory time to increase house rent, say, 2 years after? Or, should a landlord just do as he wills not minding who gets affected?
Having a father who is a landlord as afforded me the opportunity to learn some things about the landlord-tenant relationship. My father happens to be very humane and could go the length of leasing out his apartment for free. However, his nice character has warranted the situation of not being able to increase house rent when appropriate as most of his long-staying tenants still pay almost the same amount they first paid.
When to increase the amount charged for rent has always been the most difficult situation every landlord has to face since once an agreement is signed with tenants, it becomes harder to breach the contract as it might lead to losing some of them.
However, for some solid reasons it becomes necessary to increase rental charges. This way, you will be able to pay for property maintenance, pay off mortgages or bank loan, pay taxes, and above all since you’re in the business to make money, you will need your profits at the end of the month.
Therefore, before you decide when to increase the amount you charge for rent, there are some factors you need to consider. Below are some of them.
As a landlord, before deciding on the rental, you need to look at where your property is located. Is it in the suburb of the city or a rural setting? One important thing to note is that the rental rates in the city and away from the city are very different. If your property is located in the city, and the rent you charge is lower, not forgetting the demands of the city and its environs, then you need to increase the amount you charge for the rent.
Similarly, if your property is located away from the city or in a remote area, then the demand in these places is not high, and also the expenses are slightly lower. It’s always good to charge a lower amount on your property in areas like these. If you charge a higher price here, the chances are that you will end up with so many unoccupied houses, and this will give you great losses.
Before deciding on when to increase the amount you charge on rent, it is always good to look at the current economy of the country. When the economy is unfavorable, this might not be a good time to increase your rent. However when the economy is very favourable, and other investors are also coming in to set up their properties and businesses in your area, then this could be the right time.
Therefore, there is no laid-down rules for determining when to increase rent. But with discretion, as a landlord, you can ascertain the best time to do so while protecting your image. What do you think?