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How to Increase the Rent Without Losing Your Tenants

Just like a majority of other aspects of property management, increasing the rent is also an art. How? Well, that’s because most tenants would always frown when it comes to increasing the rent, no matter how nicely you treat them. And sometimes if the sentiments of the tenants aren’t addressed, they might want to leave your rental property and start looking for other houses for rent. While some landowners prefer balancing the financial advantages of increasing the rent over keeping ideal tenants who don’t cause any issues and always pay their rent on time, others hesitate to raise the rent due to the fear of causing an argument with the tenants for asking more money or losing the tenant.

However, increasing the rent is usually inevitable as insurance costs increase and taxes go up every year. Also, if the rental market rates increase and landlords do not raise the rent, their net income will be reduced.

Want to raise the rent without losing your ideal tenants? Well, here are some useful tips for successfully raising the rent.

Tips to Raise the Rent Without Losing Tenants

Top Tips to Raise the Rent Without Losing Your Tenants

There are many ways to increase the rent without damaging a successful landlord-tenant relationship. Some of the best ones have been mentioned below.

  • Increase the Rent Gradually

While looking for apartments for rent in Canada, renters prefer having a rent raise policy in the rental agreement that states the rent can only be raised once a year if the lease is renewed. Why? Well, that’s because many landlords increase the rent so much that it goes beyond the renters’ budget and makes it impossible for them to pay the rent.

Remember, raising the rent above the fair market rate will not only make your property unaffordable to the tenants but your existing tenants may not want to renew the lease. Hence, raising the rent incrementally over a period of time until you reach the market value of your property can be an ideal option.

  • Provide Your Tenants with a Notice

Tenants may be initially upset that you are increasing the rent. But if you avoid the element of surprise, give them advanced notice of at least 30 days before raising the rent. It will provide your tenants with ample time to prepare themselves for a higher monthly rent.

  • Give Your Tenants Value for Their Money

Did you know, that tenants choose houses for rent over buying a new home because they can have the access to specific amenities such as gyms, pools, parking lots, laundry facilities, and convenience stores that would otherwise be an enormous expense? So, if you, too, show your tenants what value they will be getting if the rent is increased and also promise to bring in new amenities to your property, they will certainly agree to pay more rent.

The Bottom Line: Every tenant’s situation is different which makes it practically impossible to predict how they will react if the rent is increased. But that doesn’t mean you won’t raise the rent, right? Just follow the above-mentioned points and you will be able to increase the rent easily without losing your tenants. Also, try not to raise the rent by more than 10% as it would definitely bust your tenant’s budget. Should you be looking for a company that offers the best rental relocation service and can help you find ideal tenants for your rental properties, reach out to us. At Home Finders, we offer landlords the best platforms to advertise and manage their rental properties. Moreover, our pre-screened tenant database will provide you with a wide list of renters who are looking for houses for rent.

Apartment Rental Home Rentals Houses for rent

How can Landlords Verify a Renter’s Proof of Income?

From landlords to credit card companies, everyone asks for proof of income from consumers and applicants. But have you ever wondered why this piece of information is so important? Well, that’s because proof of income provides a clear understanding of renters’ finances and whether or not they can afford to pay the rent. So, whenever a renter comes looking for home rentals, it’s important for every landlord to ask a renter for proof of income.

Remember, no matter how much you believe a prospective renter is a perfect fit for your rental apartment, some of the first things you need to know about tenants are how much money they make and if the rent is affordable for them. In this blog, we have highlighted some of the best ways landlords can verify a renter’s proof of income. Keep reading till the end.

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4 Ways Landlords can Verify a Renter’s Proof of Income

In addition to checking their eviction records, criminal histories, and credit scores, verifying income is also an important part of the tenant screening process. Some of the most useful ways for checking a prospective renter’s proof of income have been mentioned below.

  • Ask for Pay Stubs

Tenants looking for homes for rent in Kelowna or elsewhere can obtain a pay stub document from their employer to show how much they have earned within a certain period of time. With the help of pay stubs, landlords can not only check the gross income earned by the prospective tenant but also find out the details such as the full name, contact information, and employer’s name.

  • Get the Last Two Years of Tax Returns

Requesting tax returns for the previous few years shows all sources of income that a renter has earned over the tax year including interest income, contract work, and employment. Sometimes, the tax return also includes the W-2 tax forms that an employee receives at the end of the year. It shows his/her income from the previous tax year.

  • Take a Look at the Bank Statements

Not all the renters who are searching for home rentals receive regular pay stubs if they are self-employed. In this case, landlords can ask for their bank statements to verify their proof of income. A bank statement will show every withdrawal, deposit, and transaction made by the renter.

However, if the renter gets paid on commission, their income may fluctuate every month. In this case, get copies of bank statements for the past two months to determine if their income is steady enough to fit your income requirements.

  • Income Letter from the Prospective Renter’s Employer

If pay stubs are not available for some reason, you can also ask for a letter from the employer. An income letter or a letter of reference from the present employer verifies an employee’s income and also confirms that a renter has the means to pay for rent. It includes how long the renter has been working there, his/her role in the company, as well as how much he or she is earning.

The Bottom Line:

Apart from these, there are many other ways landlords can verify a renter’s proof of income. Some of these include contracts or invoices, 1099 tax forms, worker’s compensation details, profit and loss statements, annuities, interest, and dividends, among others. Should you be looking for a team that can help you post your rental listings and find the best tenants for your home rentals, reach out to us. At Home Finders, we not only offer the best platforms to advertise and manage your rental listings but also provide a pre-screened tenant database. Added to that, you can also create a free business dashboard with a business logo and contact information. To know more about our services, call 250-899-8133.