Did you know that a whopping 40% of people in Albuquerque, New Mexico rent instead of own?
If you manage one or more properties, then it's important to stay on top of the cost of the rent. The last thing you'd want to do is get taken advantage of by having rent that's way too low. Anyone who hasn't increased their rent recently should think about doing it soon.
Are you wondering if it's a complicated process or not? Keep reading to learn all about how to implement rent increases with these tips for NM landlords.
Calculate the Appropriate Rent Increase
As a New Mexico property manager, your first responsibility involves calculating a rent increase that's fair to both you and your tenants. The last thing you'd want is a wave of tenants moving out because your rent is too high. This is why it's a good idea to compare and contrast your prices with those of your nearby competitors.
Aside from the general competitors, you should also factor in various renovations and additions to the property that you've paid for recently. Whether it's a new basketball court, fresh appliances, or something else, your tenants realize that the price of these amenities will get reflected in the new rent.
Include the Increase in the New Lease Agreement
Keep in mind that it's not possible to implement rent payment increases for tenants who already have an active lease. What you can do is include the increase on the next lease. Be sure to notify the tenants of the exact increase ahead of time.
That way, you can follow legal regulations and give them enough time to decide if they want to stay and pay or move to another location after the original lease expires.
Aside from a rental price increase notice, you should also give them proper time to look over the new lease before signing it. This is why it's so important for your property management company to keep track of the types of active leases, their expiration dates, and more.
Even one mistake could cause you to lose tenants and waste money by having vacancies. You could even get into legal trouble. To avoid this, be sure that your tenants not only sign the new lease on every appropriate page but that they also sign the notice of a rent increase.
Are You Ready Succeed With Rent Increases?
Now that you've learned all about how to implement rent increases with these tips for NM landlords, you can ensure that the process goes as smoothly as possible. That way, you'll make even more money in exchange for your hard work as an attentive landlord.
If you feel like you're in over your head, then don't worry because we offer full-service property management services. From rent collecting to tenant screening, we're proud to serve many owners and residents in the New Mexico area.
Feel free to reach out to us and get the ball rolling. We look forward to working with you.