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February 26, 2008
Raising Rent?
I am a landlord who owns a 4 story house by 7th avenue on 14th street. and rent out the bottom two floors as a duplex to a young guy and his roomate. They with their cat and dog all moved in 4 years ago and I charged them $2400(they have a dw/w/d/backyard access,1.5 baths and a top of the line kitchen with the usual elements) I hadn't raised the rent the first 2 years. Last year, I finally raised it $100. His lease is dur in May and I would really like to raise it again, is it fair to raise it another $100? - My gas bills are out of control and I feel the same level of apartments are fetching $2800-$3200- so he's still getting a bargain...
Thoughts? am curious what other landlords and tenants are dealing with
Comments
That sounds like a very reasonable rent for the the apartment you describe. Taxes, gas and other bills are all going up for you, no reason they shouldn't go up for your tenant as well.
Posted by: Mrs. Limestone at February 26, 2008 9:03 AM
Op here again:
Mr.Hancock - what do you mean, raise it $100 below market - do you mean raise it to about $2800? He's a solid paying tenant, but he does keep the house a mess!!!
I mean looking at the NY Times every other week or so and seeing that people are asking - $3K a month for a place on 20th and 4th avenue really makes me think, and truthfully the apt is very nice!
Let's not talk about my monthly gas bill of $500 or so....
thanks for the tips!
Posted by: gemini10 at February 26, 2008 9:18 AM
That seems totally acceptable.
You could probably get $3500 for it.
Posted by: guest at February 26, 2008 9:19 AM
Raise the rent 5% or $125.
Posted by: guest at February 26, 2008 10:01 AM
If you like your tenant and you need steady income from the apartment i would not raise it too much. But if you have not raised in 2 years up to 200$/mo increase is not out of control. But if your not afraid to lose your tenant you can always try for 3000+... but you never know who you are going to get as tenants. For the matter of a few hundred you could potentially have a much bigger headache and a month or more of vacancy.
Also, I would in the future raise the rent ever year in order to get it closer to market rates.
Posted by: katiem633 at February 26, 2008 10:17 AM
Since you seem to be mostly happy with your tenant, I say you go with your current plan of a $100 increase. As katiem633 suggests, the devil you know (by the name of Messy) is better than the devil you don't (Mr. Annoying? Ms. I Never Pay the Rent on Time? Sir Housing Court?).
Good luck.
Posted by: curiositykilledthecat at February 26, 2008 10:23 AM
Damn! $2400 a month these people pay?! All the power to you landlord. I dont know if thats the going rate or not...I dont even care...but damn, why do people spend $2400 a month on RENT! That is a mortgage payment on a small condo.
Posted by: nycityguy9 at February 26, 2008 10:29 AM
Mr.hancock - you hit it right on the money! - I have a drafty house and when my tenant calls up complaining he's cold (despite the heat being up to 74!) I turn it up!
maybe getting a seperate boiler might make sense, however I probably should spend the money properly "winterizing" the whole house
Thanks so much for all your tips
I think I will raise it $200 so it's at $2700 and hopefully he stays, if not - I will raise it to $3k negotiable
Posted by: gemini10 at February 26, 2008 10:36 AM
my studio in the north slope rents out for $1700. and i had more than 10 people who wanted it on the first day i posted it.
you are being very fair.
Posted by: guest at February 26, 2008 10:51 AM
I think raising it $100 is fair, but then stop for a couple of years. My landlords only raised the rent on my apartment $200 dollars in 7 years (they were old timer Italians.) I think it is the new landlords who go crazy with rent raising. Just because you can raise the rent, doesn't mean you should. Raise it enough to cover the hike in your bills, but if the income on top of that seemed good when you set the price, why is it too little now? Obviously it's not - people just see dollar signs. Really, rents are stupidly high in this city - no reason why we all have to jump on the bandwagon.
Posted by: guest at February 26, 2008 10:58 AM
How much does it cost to put in a separate boiler? I've been considering doing that because having the thermostat on the parlor floor really leaves the basement apt so cold. My poor tenant never complains, but she uses electric space heaters and our electric bill is $300/month! (we pay her electricity as well)
Posted by: guest at February 26, 2008 11:02 AM
Wow, 11:02 - I can't beleive you pay their electric bill. We had the thermostat moved from the parlor floor to our apt (we occupy the two top floors as we wanted to control the heat) - I think the electrician charged up about $700 to move it
10:58 - I agree, I don't want to raise the rent to be greedy, I just am feeling the pressure of our gas bills being ridiculosly high and I need some extra income to offset that cost. When I did my refi last year, my mortage payment went up by $250 because the appraisal went up, thus increasing my insurance costs...
Posted by: gemini10 at February 26, 2008 11:14 AM
Discuss the amount of the raise with the tenant.
Start at the top.
You can always negotiate the price down
.
Talking is good.
At least you are communicating which means you will come to an agrreed price.
Posted by: Ysabelle at February 26, 2008 11:30 AM
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