Rising costs and growing competition in rental real estate have all made Portsmouth property management quite difficult. Naturally, landlords need to raise rental rates from time to time to increase their profit margins. So how can one go about this, especially without losing one’s tenants?
First of all, property managers and landlords need to take a look at their operational costs. You need to determine if costs like insurance, maintenance and utilities have gone up and if yes, by how much? Find out the percentage increase and communicate with your tenants regarding the same. This way there is no scope for arguments.
Additionally, you need to determine the rate of similar units in the Portsmouth area. In this aspect, it is important that you do your own research instead of relying solely on rumors and opinions of property managers. An important source of such information is local newspaper ads as well as Craigs’ List listings that mention the price of similar units in the locality.
Finally, list the new rates and see if new tenants are willing to pay these increased rents. It is essential to advertise the vacancies at least two to three months prior to the expiry of the lease contracts. This way you can get an exact idea as to whether new tenants are willing to pay the raised rates. This can also help you justify the raised rates to your existing tenants.
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KRS Holdings | 2000 West Club Lane, Richmond, VA 23226
Phone (804) 554-3197 | fax (804) 282-4757