It may seem obvious, but raising rent and determining rent pricing strategically is an easy way to increase your rental revenue each month. However, setting the rent price isn’t that easy. Raising rent without doing the proper preparation and market research will chase away potential tenants, and you’ll be worse off than you started.
Here are a few tips to raise your rent prices and some alternatives that will increase your revenue as well.
It’s gotten a lot harder to make the rent.
Rents have been soaring across the country, even outpacing home values, according to a recent Zillow report. Some areas are facing a particularly harsh reality: In San Francisco, renters have seen a nearly 15% yearly increase, and Denver tenants have faced an 11.6% rise.
And it’s not just a big city problem.
“Places that were more traditionally affordable are growing more quickly,” said Skylar Olsen, senior economist at Zillow.
The reason? A shortage of available rentals.
“Vacancy rates are at very low levels, which continues to push rents higher,” said Andrew Jakabovics, senior director, Policy Development & Research at Enterprise Community Partners.
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