So it's time to increase apartment rent?
It’s a normal occurrence and something that must be done to keep market value, cover needed renovations, encourage a better class of renter, or any other number of reasons. The problem is convincing your current tenant that your apartment complex is still a great value.
Here are 4 things you can to do remind your tenants that you offer great value even with higher rents.
- Break down the numbers.
Most residents will focus on the difference from one year to the next. Break down the numbers – including parking cost, utilities (if you pay), and any other costs you can explain – and put their current lease next to the renewal offer. This will give them a chance to understand what they are paying for and may convince them it is a good value.
- Remind them of the concessions made in the beginning.
Make sure they know that you are not simply raising rents, but that they initially were receiving a superb deal and the new rate is the actual cost of living in the area. Whether it's an apartment, townhome or house for rent, prove your value.
- Ask them about their unit.
Are there repairs that need to be done or updates they would like to see happen to their apartment? Have they been happy there? Do they like their neighbors? If you can remind them of the things they like about the complex and offer to do some inexpensive maintenance updates, they may accept the increase more willingly.
- Value out similar units in the area and help the tenant compare your value to other comparable complexes.
Often times the tenant doesn't even know what their other options are; they may be initially upset about the increase and making threats. If you have done the research and can show them that they will pay the same – if not more – for a similar apartment or townhome, you might change their mind. You can also remind them that even if the rent is similar, they will have to pay moving costs and deposits which will hinder their cash on hand as well.
No one likes to pay more for something they've been getting a deal on previously, but a landlord also needs to consider their business and how to run the best complex they can. Your best defense will always be honesty. By explaining the whole situation, including the reason for the rent increase and comparable rents in the area, you may win them over without much trouble.