At Stokley Properties, we provide professional property management for the Walnut Creek and Contra Costa areas. Today, we want to talk about the best way to increase the rent on your current tenants.
COMMUNICATING WITH OWNERS
Our tenants sign a one-year lease when they move into a property. Around the tenth or eleventh month of the lease, we talk to our owner to make sure that they want to continue leasing the property. Sometimes, they want to sell or do something else, and we don’t have to worry about the rental amount.
CHECK THE MARKET
When the owner tells us that they do want to renew the lease, we go back and analyze the current rental market. It’s important to look at current rents and our own portfolio of rental properties in the area. We also consider the tenants. Are they good tenants, and do they pay on time? Are they taking care of the property? We take these things into consideration when we’re setting a range for the rental increase. Once we understand what the market is doing, we go back to the owner and decide on the best rent increase for those tenants. We want to be united in what we are asking tenants to pay.
RENEW THE LEASE
We tell the tenant what their new rent will be, and we sign a lease for another year. Our goal is to both increase the rent and retain good tenants for our owners. This maximizes the profits for the rental property, and that’s our goal: making owners profitable.