Raising the Rent Without Tenant Complaint
When you Rent / Sublet an apartment over a period of time, in many cases the rent fee that you charge does not increase at a sufficient rate to compensate for Inflation and price increase in the neighborhood. At the same time it is important to maintain a peaceful and pleasant relationship with your tenant but not at the expense of not raising the rental fee when needed.
For this purpose, we have compiled below a short list of recommendations and tips that will assist you in raising the rental fee without fighting with your tenants:
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Carrying out a cosmetic renovation to the apartment in exchange for rental increase- Especially in old apartments by making minor cosmetic renovation to the apartment you will improve the Tenants quality of life and in return they will be willing to pay a higher monthly rental fee. Examples of such minor cosmetic upgrades are: installing beautiful lighting fixtures, installing parquet on the floor, adding curtains, etc. From our experience, if you plan this minor renovation correctly, you can easily carry it out while the tenants stay in the apartment and keep on paying the rent. In return for this cosmetic renovation, you can significantly increase the rental fee, so the extra rental fee will cover over 1 year the apartment minor renovation cost.
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Improving relations with tenants by appointing a Property Management Company- often the service level and the attention that the tenants receive from you is suboptimal and this might cause dissatisfaction. One simple way to increase satisfaction and at the same time reduce your hassle as landlords is by appointing a company that will manage the apartment for you, taking care of everything. From our experience, the emotional separation created by working with a management company, emphasizes to the tenant that this apartment is an additional source of income for you, making a rental fee raise legitimate (browse the link for more details on: Property Management and Rental services).
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Contract Extension option for a secondary year with build in Rental Fee Increase- In most property rental contracts it is common to add an option for a secondary year contract extension option. It is recommended to tie up this option to a fixed rent fee raising by X%. This will give on one hand certainty to the tenants and will grant you a rent fee increase.
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