5 Easy Ways to Get More Rent For Your Tennessee Home
Posted by Justin Cory on Wednesday, October 27th, 2021 at 1:21pm.
Conversations about rent prices and rent increases can be difficult and hinder the landlord-tenant relationship. The subject of a rental increase often comes up when a tenant would like to renew their lease. Oftentimes, tenants will move out after the rental increase.
There are many reasons why a rent increase or new streams of income may be necessary for your rental business. However, before implementing a rental increase it’s important to undertake some important steps.
In this article, you’ll get some tips to help you determine how you can successfully raise your rent without losing tenants.
Confirm What the Law Dictates
Before implementing your decision on escalating the rental charge for your investment property, it’s important to confirm what the law says about it.
Laws are always subject to change therefore, it’s important to always double-check before moving forward with a rent increase. This will help you avoid legal liabilities. Both state and local laws vary in terms of raising rent with some of the regions being prohibited from increasing rent.
Tennessee doesn’t currently have any specific rules regarding rent increases, however, they must be done at the end of a lease period and tenants should be provided with written notice before the increase. It should also be noted that a landlord cannot increase the rent as a form of retaliation against their tenant. What’s more, all rent increases must abide by Fair Housing Laws.
Staying on top of changes in legislation can be time-consuming and confusing. It could therefore be in your best interest to hire a property management company. They’ll be able to manage your rental property while ensuring that you abide by all local, state, and federal rental laws.
Include Rent Increase Clause in the Lease
If you’re allowed to increase rent, then it’s best to include that in the original lease agreement. You should ensure that your Tennessee tenant is in full understanding of the terms for a potential rental increase to avoid disputes later on.
When drafting the lease be sure to indicate the percentage or dollar amount of the increase and how often/ under what grounds it would be applied. The lease should thoroughly cover all details pertaining to rental increase if any so that it comes as less of a surprise to the tenant.
The lease should also clearly state when a tenant can terminate their contact. There should be a notice and a given period in which a tenant should notify the landlord of their intent to discontinue the tenancy.
Improve Amenities and Facilities in Your Rental
Upgrading the facilities in your rental property can help increase the value of the property. Consider the property from a renter’s perspective. There are certain amenities that tenants are always looking for in the property. These features/ upgrades are what will make the tenant stay longer and even pay more.
Adding appliances to the property such as washing machines and dishwashers could help increase the rent. It may be costly at first, but the increase in rental income will be able to offset that expense.
Just like any other decision that involves investment, make sure that you do your research on how certain home improvements will positively impact your property’s value. Other recommended upgrades include curb appeal, installation of new flooring, countertops, and HVAC.
Determine How Much You Can Increase Rent By
Having a low rental charge at first could be the reason for the low return of investment (ROI) from your property. With a low rental price, you might be unable to meet your obligations and other financial needs.
Doing thorough market research will help you determine how much money is appropriate to be set as the initial rental price. Just as in deciding the right amount of rent to set, even when planning on increasing your rent it would be important to carry out a market study.
Try to find out if other neighboring apartments have raised their rental amounts recently. Find out the rates of increase and reasons for it as well as the period it took for the rent to be escalated.
Use the information to determine the rate at which you will increase yours as well as other factors that may impact it. Your goal it generates more income without making rent too expensive for your tenants. Market research will allow your to find a fair and balanced price.
As always, remember that communication is paramount to the success of the investment. Ensure that you communicate with your tenant about your intent to increase the rental charge before the current lease period ends. Be sure to refer to the lease agreement and state guidelines to check on the agreed notice period as well as other pertinent details.
Remember that it’s best for all communications to be made in writing for reference purposes. What’s more, providing a period for notice is helpful since you can resolve any issues that the tenant may have regarding the rental increase.
If you’re looking to increase rent remember to double-check Tennessee's laws and communicate clearly with your tenants. What’s more, be sure to conduct market research to avoid overcharging your tenants. If any of this seems overwhelming, hire the services of a property management company.
Cory Real Estate Services is here to offer you the best real estate service in Tennessee. By making use of our tried and tested strategies, we ensure that our client’s properties stay ahead of the competition.
Management of your Tennessee home doesn’t have to be a stressful endeavor. Reach out today and learn more about our property management services!