It isn't as simple as it looks. Raising rent for tenants can be just as difficult as asking your boss for a raise.
Most landlords do not need to explain an increase in rent. A buffer period of at least four months is recommended. This will allow your tenant to adjust to the new rent and establish a good relationship.
It is however not easy, as both tenants and owners are bound by a contractual agreement. There are legal procedures involved.
Understandably, you might feel a little nervous when approaching your tenant about a rent increase. A confrontation could lead to property damage from an angry tenant. If you take some steps while increasing your rent, you can reduce the tension and make the hike a routine that every tenant can follow.
So if you are worried about how to increase property rent, follow these steps:
Add a minor rent hike during each period of lease renewal :
Tenants might expect a slight increase in rent when they renew their lease. Tenants will not be happy if you suddenly raise the rent by a few thousand Rupees after charging the same rent for years. It is best to raise the rent by only 3-5% per annum. This will ensure that your tenants don't get caught unaware and can accommodate the rent increase in their monthly budget.
Send notice prior to lease-end :
60 days before the termination of your lease, it is best to notify your tenants of any increase in rent. Written notice should be sent to all tenants. This will ensure that no one can deny the increase later and it will also help you determine what your tenant might want. You will be able to market the property and conduct house visits if your tenant refuses to renew their lease.
You can also implement some other strategies to increase rent without tenants objecting. These ideas focus on how house remodeling can increase the property's market value, which in turn will result in an increase in rent.
These home decor ideas will help you increase your rental income.
Visual appeal upgrade :
Your property's first impression of potential tenants will determine if they are interested in viewing the interior. A key step in increasing rent is to improve the property's exterior. An attractive exterior with a well-kept driveway and landscaping makes your property feel welcoming. An attractive exterior will usually lead to a beautiful interior. An attractive property will attract a tenant who is willing to pay more rent than one that is less desirable.
Fresh paint :
Paint is the best home decor option when it comes to increasing your property rental. The appearance of your house and rooms can be instantly updated with a fresh coat of paint. You can paint the walls, ceilings, and panels with bright colors or other textures. Light colors can make small rooms appear larger and more spacious. You should avoid using neon green or hot pink colors. If you are unsure about the color choices, hire a professional. Prospective tenants will pay more for a property that has been freshly painted.
Effective landscaping :
This is something that most property owners don't give much credence to, but good landscaping can greatly increase your rent. Ask a landscape architect for a free assessment of your property and to give you some suggestions. Your home will be more appealing if you use straight lines, geometric shapes, and minimal decorative elements. Sometimes, all you need are a few trees, native plants, and natural paths. It is possible to transform a house's appearance by putting the right elements in the right places. This is especially true if you are trying to increase the rental income. If you make your property attractive, even existing tenants will pay more rent.
Bathrooms :
A potential tenant will look for a bathroom that is clean and well-maintained. If you are looking to make the bathrooms more appealing to tenants, they will likely be open to an increase in rent. A master suite that includes a large master bath, ample storage space, and a clean appearance adds a lot to your property's value. It is easier to increase your rent after you have increased your property's value.