How to Make a Smooth Transition When You Buy a New Rental Property - Explaining Rent Increases

When you purchase a new property to add toyou should either by letter, or preferably in
your rentals portfolio, you need to be sure youperson, since you want to get to know your new
don't end up losing good tenants unnecessarily. Intenants anyway, show them why you need to
my 30 years of managing my own properties Imake the increases. You don't have to go into a
have found that any kind of change is difficult forlot of detail but if gas prices in your area have
some people to accept, and especially tenantsincreased in the last year or so, you might give
who have been living in units that they considerthis as the reason.
their home.If the rents are way under market rents for the
The first thing most of them will probably bearea, explain this to them. To bolster this, you
afraid of is that you are going to do a blanketmight show examples of rents for similar
raising of rents. Inc some cases where theapartments or houses being advertised currently.
previous owner for one reason or another hasIf you want to keep your tenants happy and not
not raised rents to keep up with ever increasingupset about the new ownership, frequent contact
costs, you may indeed need to raise rents. Ifwith them during the transition may help preserve
rents have been traditionally low and haven't beenyour occupancy rate
raised in several years, the tenants may expectThe information in this article is for education or
some kind of an increase, even though they mayentertainment only, and the author will not be
not like it. If you don't make a drastic changes,responsible for the use or misuse of any of the
they may go along without any trouble.content.
If you are going to raise rents even a little bit,