Every landlord has to decide how much to raise the rent, if at all, every time the lease term comes to an end. At Colorado Realty and Property Management, Inc., we go above and beyond when it comes to our process for deciding to raise the rent. In our opinion, we do it the best!
Monthly renewal committee meetings
We set ourselves apart from other property management companies by holding monthly renewal committee meetings consisting of managers from several departments including accounting, property management, and maintenance. These leaders meet to discuss what has happened at the property during the recent lease term(s) such as maintenance requests, timely rent payments, property condition and how difficult the property was to rent, and if it was leased in the last year.
All of these factors contribute to how much, if at all, the rent is raised.
Other factors we consider are:
- What is the market rent for properties based on comparable homes in the area? It’s important to remember that the market sets the market price.
- How have the tenants been treating the property? Are they submitting excessive maintenance requests for things that should not be going awry? To protect the investor’s best interests, we want to ensure that the tenants are not trying to waste the investor’s money on unnecessary repairs.
Our committee comes together to discuss each and every property that is up for renewal so that we can provide the homeowners with the best recommendation possible. These recommendations include how much to raise the rent or if the investor should even consider renewing the lease to the current tenant.
There are times when raising the rent may not be the best idea.
If the property was particularly difficult to rent, the committee might suggest not raising the rent to avoid giving the tenant a reason to vacate the property. Our committee looks at each property, one at a time, to determine the best course of action for that specific property. There is no “one size fits all” solution or formula. We base our recommendations on data, reports and our expert knowledge that comes with being in the industry for so long. We’re here to help!