Should You Increase Rent at Lease Renewal

28 Mar Should You Increase Rent at Lease Renewal

When a lease is approaching expiration and you want to continue renting to your tenant, you have to decide which rent price you want to offer to the tenant on the new lease. Too much, and you can incentivize a good tenant to vacate leaving the landlord with expensive turnover costs. Too little, and the landlord will lose investment income. In this video I discuss rent increases from the tenant and landlord perspective to help you guide your owner clients to make the best decision for their property and investment return. Topics covered: 1. Helping tenant understand the need for a rent increase at lease renewal 2. How to explain to your owner that there is value in keeping a good tenant at a lower rent increase, then getting hit with expensive turnover costs 3. Property managers have a fiduciary duty to inform their owner clients of thing that should be considered in a renewal price decision which might be counter intuitive to an inexperienced landlord. 4. Why you absolutely should charge a lease renewal fee to compensate you for the additional time you will be investing to help do what is in the owner’s best interest come lease renewal time.

Ben Parham

Founder at Property Management Training Headquarters

Ben Parham is the Founder of Property Management Training Headquarters as well as the President and Managing Real Estate Broker of Integrity Realty & Management, Inc., a cutting edge real estate sales and property management brokerage operating throughout the Greater Denver Area. Ben served as the 2018 President of the Denver Chapter of the National Association of Residential Property Managers (NARPM) and currently serves NARPM National as a Southwest RVP Ambassador. Ben is a U.S. Navy veteran where he was a Cryptologic Technician (Technical) and was awarded the Joint Service Achievement Medal, two Navy Achievement Medals, and a Good Conduct Medal. He has a Bachelor of Science in Business Administration and is licensed as a real estate broker in both Colorado and Florida.