How much to increase rent? And how to document it?
Are there any regulations guiding rent increases in a 2 family home (as in, not rent stabilized or rent controlled)? Are we subject to the same guidelines as set forth by the Rent Guidelines Board? What about typical practices? Do most landlords keep rent the same or increase it? If so, by how much? Should we just start a new lease or is there some lease renewal form we should be using?
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in Landlord 13 years and 3 months ago
5
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5 replies
snowman2 | 13 years and 3 months ago
I never raise them the second year (and I make that committment prior to signing the first lease) but beyond that I do. I rent below market to start (to have a choice of interested prospective tenants) and then make sure that they are increasingly below market the longer they stay – assuming they are good tenants. So someone in the 5th year would be a greater percentage below market than someone in their 3rd year. It’s not an exact science. If I’m not happy with them then I do not renew and let them know that in writing a couple of months prior to the end of the lease along with instructions on how to leave the apartment in order to get their full deposit back. I write it up as a new lease each year.
curiositykilledthecat | 13 years and 3 months ago
Echoing everyone else here. You can raise the rent as much as you wish, but if you have good tenants, don’t be greedy. We never raise rent year 1 – 3, and have included a modest increase (1 – 2%) every few years beyond that. Good tenants are worth WAY more than a few hundred bucks a month.
Suzanne | 13 years and 3 months ago
The answer is you can raise it as much as you’d like. I know my landlords raised my rent maybe just a few times over the course of a dozen years, and then only because there was a dramatic change in the value of apartments in our area over that time. We had a very stable situation, and the stability was more important to them than driving me away and having to find a new tenant. If you have good tenants, it seems crazy to raise rent just because you can.
brooklynhouselove | 13 years and 3 months ago
Like Dave mentioned, if they are nice people, you may not want to run the risk of driving them away. Typically, we’ve waited every two to three years before raising the rent (although you can raise it every year if you’d like). Historically, we’ve had excellent tenants and want to keep them happy by keeping rent stable. I think between 3%-5% is a normal increase, but again, as the homeowner you can really do whatever you want.
daveinbedstuy | 13 years and 3 months ago
You can use a lease renewal. The apt as you describe is not bound by any controls on rent. You can increase it to whatever you want to. That said, if you have really good tenants you might not want to lose them over a few more hundred a month. You need to determine what the “market rate” is for your area and quality of apartment. Certainly yard access, basement storage and W/D access command more of a premium.