Gowanus: Rental Increases
So I’ve been reading all over the place that rents are going to be skyrocketing over the course of the next 3 years. I have a couple of tenants whose leases expire in a couple of months I am looking to increase rents at least 8% to 10% a month when they are up for…
So I’ve been reading all over the place that rents are going to be skyrocketing over the course of the next 3 years. I have a couple of tenants whose leases expire in a couple of months I am looking to increase rents at least 8% to 10% a month when they are up for renewal. These are all prewar renovated units in Prime Gowanus with wood floors and SS appliances. All my tenants pay on time. I dont really have any issues with them, however taxes, water, insurance, gas have all increased over the course of the past year. I want to hear from other landlords or tenants on how much there rents have increased over the years. Is a $200 increase the norm now a days??
I don’t care how much rents go up, when I am a tenant (and when I am, I am always a good tenant, and one who pays on time), raising me more than 5% will make me unhappy and make me start looking around for a better deal and a landlord who appreciates me (and there is always is a better deal and a better landlord out there.) Greedy, greedy.
For the most part since 2009 rents have not gone up.
Some of us even lowered rents to retain good tenants or to avoid vacancies.
I’m not very familiar with the rental market around 3rd Ave and 9th ave, but personally I would not raise rents on good tenants.
I just left a 2-bedroom apartment in Brooklyn Heights (not as fabulous a location as “Prime Gowanus”, but I liked it.) for which I was paying slightly below market, and my landlady didn’t increase the rent for the new tenants. And this is in a full-service building. That’s not near a Superfund site. Does that give you an idea of what to do?
>I am looking to increase rents at least 8% to 10% a month
So by year’s end the rent will have doubled?
To be serious,you don’t have issues, it’s in Gowanus, and you want to raise the rent by $200? That’s nuts. Your costs could not have increased anywhere near that, I calculate mine at about than that per YEAR (for 1 apartment).
“…rents are going to be skyrocketing over the course of the next 3 years”
That’s silly. If you’re so sure about the future you should already be rich and not have to bother being a landlord. What matters is the rental market now, not 3 years from now. If the apartments are $200 under market now, then ask for the increase (and risk turning good tenants into bitter tenants or former tenants). Personally I would look at the RGB increases (currently 2.25% to 4.5%) and go a little more than that – maybe 3-6% for a 1 or 2 year renewal, not 8-10%.
Good tenants are hard to find. Raising the rent $200 essentially says you want them out, despite how reliable they’ve been.
If they reluctantly re-sign prepare for increasingly bitter, uncooperative tenants.
“Prime” Gowanus? lol…
You are crazy — there are still lots of rentals in nice areas that are vacant.
Prepare to eat at least a month or two of search costs if you try that.
I’d stick to the rent regulated rate + 1 or 2 percent.
I guess it would depend on what base rent is. Where have you been reading this? I dropped my rent two years ago by 200, then raised it by 100 this year (different tenants). But then I live in “marginal Clinton Hill.” [What is Prime Gowanus?]