Reasonable Increase In Rent

I have a great condo that I began renting out last summer in williamsburg after moving into Brownstone Brooklyn. It rented easily and now that the lease is almost up Im trying to determine what’s a reasonable rent. The tenant is good and I would like to keep him, but things have really picked up there and I want to be sure Im getting what I should get. Is there a reasonable increase in rent expected after the first year? Thanks!

xistent

in Real Estate - Rentals 13 years and 1 month ago

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bkmatthew | 13 years and 1 month ago

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If you are friendly with the managing agent or the condo board president, ask them if there have been any recent rentals in the building and if they would share the rent with you. You could also check streeteasy for any recent rentals for your building. I would disagree about not raising the rent. Everyone knows that market rate apartment rents go up with the market, although also be prepared to negotiate with the tenant if they decide they’d rather move. Unless you do the regular inspections that market rate leases allow landlords to do (I’ve never had a NY landlord do this, but its standard practice in other markets) I don’t know how you’d know if the tenant is looking after the place or not.You mitigate against bad tenants by doing background checks with past landlords, housing court records, employer checks and credit checks. Renting property is a business, don’t get sentimental and avoid getting too involved in your client’s (tenant’s) personal life. You are free to charge whatever you want, it’s up to the tenant whether they want to pay it or not.

m926bk | 13 years and 1 month ago

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Well, if you have a good tenant and want to keep him happy, as you say, may I also suggest a rent increase of 0%.  There are a lot of moving-related expenses in year one, so good, responsible renters should get a break in year two, IMO.  A modest increase in year three seems fair.  You did your research last year and got the best rent you could, right?  Shouldn’t that be a fair rent for one more year?

dancingirl | 13 years and 1 month ago

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When I have a good tenant I don’t raise the rent..not worth it, unless you really believe it is seriously below the market rate.

snowman2 | 13 years and 1 month ago

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Ditto curiosity.  I never raise the rent the first year.  I play it by ear after that but the longer they stay the further below market they are.  That assumes they are good tenants.  If they aren’t good then I don’t offer them another lease – happens rarely.

timber | 13 years and 1 month ago

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Greed always carries with it some bad karma imho

curiositykilledthecat | 13 years and 1 month ago

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If we have a good tenant, we NEVER raise the rent after the first year–and sometimes not even after the second.  Good tenants are like money in the bank.  A few hundred bucks more per month is not worth the hassle of finding new tenants–especially if the new tenants end up being deadbeats.  Besides, your already good tenants will be even more appreciative of you as a landlord.

Snezan | 13 years and 1 month ago

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if it’s the gretsch you can get $5k and up depending on floor. if it’s that landing building, then more like $4k.

cupolacoffee | 13 years and 1 month ago

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“I want to be sure Im getting what I should get.” What you should get is the F outta Brooklyn, and take your greed with you.

Bklnite | 13 years and 1 month ago

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If it was rent stabilized you’d go by the RGB order and you’d get a 3.75% increase for a 1 year or 7.25% for a 2 year renewal. Since it’s a condo & not rent regulated you can increase the rent to whatever the market will bear. If you like the tenant and want to keep him happy (and taking good care of the place and not giving you headaches because he appreciates that he’s got a deal) then I’d use those numbers as a baseline.

Snezan | 13 years and 1 month ago

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you can give some details about the unit and it’s location and i’ll give you a ballpark rental figure. Then you can speak to him and find a reasonable compromise.