Did you know that, out of the almost 123 million households in America, nearly 40% of them belong to renters instead of owners?
Owning one or more rental properties is a great way to get a steady income on its own or as a supplement to your main job. One of the biggest questions is when to increase the rent and by how much. The window often comes about once a year, between the expiration of an old rental agreement and the signing of a new one.
Are you in need of a rental increase calculator? Keep reading to learn all about it.
Compare Rent With Your Local Competitors
One of the best ways to get a better idea of your next rent increase is by seeing what your nearby competitors are charging. Most rental properties go neck and neck but you could attract even more tenants if you lowball your competition even by a small fraction. That way, you can fill your property and avoid missing out on a significant amount each month due to vacancies.
However, this is only one aspect to keep in mind when calculating the percentage increase.
Factor in Upgrades in Amenities and Fixtures
When it comes to increasing rent, you also need to consider the number of amenities you have. If you've installed new fixtures, for instance, then there's no reason you can't reflect that in the new price.
From a fresh tennis court to an expansion of the gym, your tenants can't expect to get all these upgrades for free. It's much better to give concrete reasons for a rental increase rather than to do it for the sake of more money.
Of course, there's also inflation to think about. By paying the same price for years, your tenants can end up having their rent reduced. Increasing it is one way of keeping it the same when you consider the rate of inflation.
Use a Calculator
You'll be glad to know that there are special rent calculators that can make the task much less daunting. If you have no idea where to start, then you can apply for a free rental analysis.
This involves experts adding in the factors mentioned above and more. From the location of the property to its number of rooms, the more information they have, the more accurate the rental calculation will end up being.
Are You Ready to Use a Rental Increase Calculator?
Now that you've learned all about how to calculate rental increases, you can make sure that you're making plenty of money while also being fair to your tenants. Instead of having to crunch a bunch of numbers on your own, a rental increase calculator makes the job much easier.
If you'd like to reduce the amount of weight that's on your shoulders, then we can help. We offer high-quality property management services so that you can make more money with less work.
Anyone with questions should feel free to reach out. We're always happy to help.